Asda has cut the price of fuel by 1p per litre for unleaded and 2p for diesel, meaning customers will now pay a maximum of 111.9p for unleaded and 114.9p for diesel.

It is the fourth time Asda has announced lower fuel prices since May, when it slashed the price of unleaded fuel to 115.9p and diesel to 118.p.

Asda said it would hold its new lower prices for at least two weeks to cover the August bank holiday.

“These are increasingly uncertain times for millions of families across the UK, and it’s clear from all the data customers will need us more than ever,” said CEO Andy Clarke.

“We’re shopkeepers not economists, but in this ‘age of austerity’ we know the pennywise will thrive. Our stimulus package for the economy starts with saving our customers money every time they shop –real money that can be saved, or spent elsewhere.”