Supermarket giant Asda has announced it is to cut a further 1p per litre off its fuel prices.
A litre of petrol will fall to 88.9p, while the price of diesel will drop down to 102.9p per litre.
The supermarket said the new prices, which are the lowest seen at the pumps since March last year, will be in operation from Tuesday at all of its 172 forecourts nationwide.
The latest price cut comes a day after the introduction of a delayed Government fuel-duty increase which cancels out the reduced 15% VAT rates.
Darren Blackhurst, trading director at Asda, said the firm was committed to reducing the cost of Christmas for its customers, which includes lowering fuel prices.
He said falling oil costs had allowed the company to make the move despite the pressure of duty rises announced earlier this week.
"However I fear many retailers will use the rise in duty as a smoke screen to profiteer at the expense of motorists," he added.
© Press Association 2008