Tesco, Sainsbury and Asda have all shaved 2p off their petrol prices in an effort to out bid one another at the pump.
This latest battle was initiated by Asda on Wednesday and was closely followed by its rivals.
Drivers steering their way to Asda will hand over a maximum of 133.7p a litre for petrol, although diesel has remained unchanged.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Paul Watters, the AA's Head of Public Affairs, said: "Last week, our fuel-price report pointed to a 4p drop in petrol wholesale prices working its way through the system.
"UK average petrol pump prices reached a late summer high of around 140p a litre in mid September and sat there for more than a fortnight. More than a month on, the average petrol price yesterday was down to only 138.70p a litre."
-
Water companies blocked from using customer money to pay “undeserved” bonusesThe regulator has blocked three water companies from using billpayer money to pay £1.5 million in exec bonuses
-
Will the Bitcoin price hit $100,000?With Bitcoin prices trading just below $100,000, we explore whether the cryptocurrency can hit the milestone.
