Filling up at Asda fuelling stations became cheaper overnight.
Supermarket Asda has slashed the price of unleaded and diesel by up to 3p per litre overnight.
Drivers filling up at any of Asda's 322 petrol stations will pay no more than 120.7p per litre for unleaded and 124.7 p per litre on diesel.
The spread of the coronavirus has caused a sudden fall in demand for oil, according recent figures from the RAC.
While Asda’s petrol price cut will come as welcome news for drivers, other supermarkets have been criticised for only passing on wholesale price cuts to drivers who spend more money in-store.
Luke Bosdet, fuel price spokesperson at the AA says: : “Average UK petrol and diesel pump prices have been at their highest since January since 2014 and, despite wholesale costs declining over the past two to three weeks, they have stayed stubbornly above 128p a litre for petrol and 132.5p for diesel.
“This new price cut is in line with wholesale petrol falling from an average of 39.4p a litre in early January to the 37.0p between Wednesday and Friday last week.
“Sadly, only communities with an Asda fuel presence are likely to enjoy £1.50 being slashed off the cost of a tank of fuel overnight.”
“Instead, two other major supermarkets have gone back down the fuel voucher route, tying savings of 5p a litre to spends of £40-£50.
“Once again, if you’re on a low income and your spending power isn’t up to it, you miss out. Given the time of year with customers trying to pay off Christmas debts and fuel costs falling dramatically, that discrimination is quite simply mean.”
Dave Tyrer, Senior Fuel Buyer at Asda says: “"We’re pleased to be dropping fuel prices for the first time this year.
“January has been a tough month for motorists so we’re glad to be dropping the cost in line with falling wholesale markets.
“We will continue to put the savings straight back into drivers' pockets without any vouchering requirements, meaning all our customers, regardless of their budget, will benefit from a price cut at the pumps.”
How to cut your car fuel costs
The cost of filling up your car can fluctuate over the year. These tips can help you cut the price you pay for fuel.
1. Shop around
Shopping around for the best petrol prices will help you cut the cost of your fuelling bill.
Websites like PetrolPrices.com are a quick and easy way compare prices at petrol stations in your local area.
If your cheapest petrol station is quite far away from you then it's worth considering whether driving that distance could end up eating into the money you save at the pump.
MoneySuperMarket has a handy fuel cost calculator which lets you compare how far you should travel for cheaper fuel.
2. Use loyalty schemes
Loyalty card schemes can help you cut the cost of what you pay at the pump.
Supermarkets Morrisons, Sainsburys and Tesco all offer schemes which allow you to earn points while you shop which can be used to pay for fuel.
BP, Shell and Texaco also offer their own loyalty schemes which could help you save on fuel costs once you've collected enough points.
3. Watch how you drive
Making adjustments to the way you drive can help reduce the amount of fuel you use.
For example, it's best to avoid heavy acceleration, excessive speeding and harsh braking.
Using the wrong gear and straining your car's engine can also use up more fuel than is necessary.
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