Asda has again moved to reduce prices at the petrol pumps, cutting the cost of a litre of unleaded to 88.9p.

The move, which was effective from yesterday at the supermarket giant’s 172 forecourts, also included a cut in the price of diesel to 102.9p per litre.

Asda has repeatedly cut petrol prices in recent weeks – prompting chief executive Andy Bond to suggest the retailer had lost £3m in October alone through its aggressive pricing.

The reductions also reflect a dramatic fall in the price of oil since hitting a record high of more than $140 a barrel earlier this year. However, the duty payable on petrol was increased in last week’s pre-Budget report, more than offsetting a cut in VAT.

“We’re determined to lower the cost of Christmas for our customers and that includes making fuel more affordable,” said Asda trading director Darren Blackhurst.

“We have slashed prices yet again despite the pressure of duty rises announced earlier this week. World oil costs are continuing to fall enabling us to make this move; however, I fear many retailers will use the rise in duty as a smokescreen to profiteer at the expense of motorists.”