Supermarkets are continuing to pass on falling oil prices to shoppers, with Asda and Tesco among those to reduce their prices yesterday.

Asda yesterday cut the cost of a litre of unleaded petrol at its 170 forecourts to 90.9p, marking what the supermarket said was its 10th consecutive price cut since July. It also cut the price of diesel slightly to 105.9p per litre.

Tesco said it would shave 2p per litre from petrol and 1p per litre from the price of diesel at its 430 forecourts, while Sainsbury’s also pledged to match the cuts.

“With oil prices still falling, there is no need for petrol prices to be so high – it is simply ripping off motorists,” said Asda trading director Darren Blackhurst.

“Asda is committed to delivering the best and fairest prices for our customers and our continual price cuts prove that. Others should be following our lead.”

However, motoring body the AA cast doubt on the long-term viability of the cuts.

“Clearly Asda's policy is to get people through the door of the supermarket [and] other sellers will find it hard to compete with them,” public affairs head Paul Watters told the Daily Mail.

“It proves the tenacity of the supermarkets to keep on discounting, but we don't know how sustainable this is. We hope it's not just a Christmas giveaway.”

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