Another salvo has been fired in the supermarket petrol price war after Tesco slashed 3p a litre from both unleaded and diesel.
The reduction has come a day after the AA announced the price of petrol had hit a three-year low.
The AA said the typical cost of petrol at the start of this week was 87.79p a litre in comparison to 88.27p at the end of December 2005. Diesel is now around 99.72p a litre, which is the lowest price since November 2007.
Tesco said its lowest petrol price was now 82.9p a litre - considerably lower than when petrol hit a record high of 119.7p a litre in July this year.
A UK driver is now on average paying nearly £16 less to fill up a typical 50-litre tank than during this time last summer. A family with two petrol cars is now spending £68.39 less a month on fuel.
The AA said new fuel sales figures showed that petrol sales during the peak period of prices, in July-September 2008, fell by 8.2% compared to the same time last year.
© Press Association 2008