By cutting 2p from the cost of petrol Asda triggered a price war over fuel last night.

This move by Asda has now forced the rival supermarket and oil giants to reduce their prices as a result of which the new piece cut has taken petrol down to 115.9p a litre - or £5.27 a gallon - while the diesel drop likely to shift from 1p to 118.9p a litre.

This rapid fire within hours made Shell to cut2p off both its petrol and diesel prices.

Further Morrisons and Tesco matched the Asda cuts with Sainsbury's signaling it would follow suit.

As Asda has slashed the cost of fuel, the drivers for sure will be the ones to benefit, it will certainly mean relief for millions of drivers who have endured record pump prices, which led to the AA accusing retailers of 'profiteering' by failing to pass on earlier falls in the wholesale cost of fuel.

The average UK petrol prices, which reached an all time record of 121.61p a litre last week - equivalent to £5.52 a gallon - have stabilized for the first time since February.

Tesco is cutting up to 2p a litre off petrol and 1p off diesel at all of its 450 filling stations running a promotion offering a further 5p off for Tesco shoppers and Clubcard points.

A Tesco spokesman said there had been 'an easing of the pressure on world oil prices'.