We're cutting the price of unleaded petrol and diesel by 2p per litre – the third time we've reduced fuel prices in the last four weeks.

We operate a nationwide price cap, which means drivers filling up at any of our 322 petrol stations will pay no more than 116.7p per litre for unleaded and 118.7p a litre for diesel.

We've reduced the price of diesel by 9p a litre this year, and our latest price reduction means that diesel had fallen below the £1.20 mark for the first time in two years.

Our senior fuel buyer Dave Tyrer said: "Once again we’re pleased to be passing on wholesale cost reductions to customers.

"It will be a welcomed boost, especially to diesel drivers who are seeing some of the lowest fuel prices since 2018. Anybody filling up at Asda will pay no more than 116.7ppl on unleaded and 118.7ppl on diesel regardless of where they live."

The move has been welcomed by the AA, with Luke Bosdet, the AA's fuel price spokesman, saying: "Mid-February saw the chunk of the petrol pump price that is directly attributable to the fuel trade grow to its biggest in more than a year.

"Stripping out tax and wholesale costs (from two weeks before to allow changes to reach pumps fully) left an 11p surplus for retailers and suppliers – around 2p up on the same time last year. This has come as too many forecourts held on to savings from lower wholesale costs feeding through to their pumps.

"Even when Asda announced its second price cut of the year, a 3p-a-litre reduction on Wednesday 29 January, it took until the following Monday for the UK average to drop just a penny as other retailers squeezed another weekend’s worth of high prices out of consumers."

Asda's Income Tracker report for January showed that the price of petrol and diesel rose by an average of 2.3p and 2.6p per litre respectively – but in that time Asda lowered fuel prices by 3p per litre on both grades.