Asda has followed the lead of rival supermarket giant Morrisons by implementing a new round of price cuts on petrol, with Tesco now expected to follow suit.

Morrisons yesterday moved to reduce the price of petrol and diesel by 3p per litre across more than 280 outlets. While prices at individual forecourts are set locally, petrol now costs an average of 107.7p a litre and diesel 119.2p a litre.

Asda hit back by cutting 3p a litre off petrol and 2p off diesel, to 106.9p and 118.9p respectively.

Tesco has indicated that it will follow suit and match Morrisons’ reductions, while a spokesman for Sainsbury’s also suggested it would act to stay competitive.

“Unlike our rivals, we don't hide behind local pricing,” Asda trading director Darren Blackhurst told the Daily Mail. “We are calling on other retailers to follow our lead and give drivers a fair deal at the pumps.”

The news comes after the price of oil has fallen significantly in recent weeks from record levels. The previous round of petrol price cuts at the UK’s top supermarkets came just last month, when Morrisons again moved first with a 2p reduction.