Supermarket giants Asda and Tesco have cut petrol price by 2p per litre and 1p per litre of diesel.

Motorists will pay no more than 126.7 pence per litre for unleaded and 134.7 pence per litre for diesel.

Today‘s changes pave the way for Morrisons and Sainsbury‘s to follow suit.

Andy Peake, Petrol Trading Director said: “With Christmas just around the corner, and finances tighter than ever, we‘re pleased we can do our bit to make our customers‘ hard-earned cash go a little further.

“We‘re putting money back in their pockets regardless of where they fill up. Other scrooge retailers should share the Christmas spirit and follow our lead.”

The news comes as the UK‘s inflation rate, as measured by the consumers price index, fell to a four-year low of 2.1 per cent in November.