Relief at last for drivers as fuel costs are slashed

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BP, Shell, Esso, Morrisons and Asda all promised to cut the cost of petrol at their forecourts across the UK.

Supermarket chain Morrisons sparked the latest price war by announcing it was cutting the price of fuel by 3p a litre across its 285 stations.

The price drop would give a national average of 107.7p for unleaded and 119.2p for diesel.

Rival supermarket Asda and fuel giant BP responded in turn with their own reductions. Asda cut its fuel prices to 106.9p a litre for unleaded and 118.9p for diesel.

BP said it was dropping its prices by "as much as 3p a litre" at most of its company-owned sites across the country. Esso said it would review its prices.

Asda trading director Darren Blackhurst called on rivals to match its move in the price war.

He said: "We are calling on other retailers to follow our lead and give drivers a fair deal at the pumps, not just those that live near an Asda."

Shell also said it would be passing on the falling cost of oil.

The average price of petrol at the pumps is now 112.87p for petrol, and 124.21p for diesel, according to the AA.

Earlier this month, the AA said petrol prices were still too high.