Falling oil prices have prompted the top three UK supermarkets to cut their petrol prices.

The top three UK supermarkets have launched a petrol price war, which has seen the cost of diesel and unleaded petrol slashed by up to 5p a litre.

The price cuts are being led by Sainsbury’s, which will reward customers spending £50 or more in store with a 5p cut from Thursday (24 July). The offer will run for two weeks.

From today (22 July), ASDA is making a 3p cut which takes its price of unleaded petrol to 113.9p and diesel to 128.9p. ASDA credit cardholders can also get an extra 2p discount if they pay using their card.

Morrisons, meanwhile, has already reduced the cost of unleaded petrol and diesel by 4p a litre – the move came into effect on Monday (21 July).

The price cuts, which have been made in response to the recent drop in the price of oil, will be welcomed by drivers who have seen the price of unleaded petrol soar by a massive 25% over the past year.

Providing a welcome respite to the soaring costs, the price of a barrel of oil has fallen from a peak of $147 to $130. Gordon Brown’s decision to postpone a 2p rise in fuel duty until at least March 2009 has also eased the situation for drivers.

ASDA Trading Director, David Miles, commented on the supermarket’s decision to cut its prices: “We are seeing a more stable reduction in oil prices allowing us to pass on the savings to customers. We urge other retailers to follow our lead at a time when customers need as much help as possible. 

“The latest price cut is a further example of ASDA making motoring more affordable and illustrates our commitment to passing on cost savings to our customers.”

To find the cheapest petrol prices in your area, visit www.petrolprices.com ^[1]

By Natasha Piscitelli