Two of the big supermarkets have followed Asda’s lead by cutting their fuel prices by 3p per litre.
-> Asda slashes petrol price by 3p per litre
Asda, Morrisons and Sainsbury’s have reduced the price of unleaded petrol by 3p per litre and diesel by up to 2p.
The move follows criticism from that big retailers were refusing to pass on the dip in wholesale costs to their customers.
Drivers have suffered a rise in fuel prices almost every day since the end of April even though the wholesale prices have been coming down by around 2.5p a litre since May 24.
The RAC have said that the falls in these costs have been caused by the US drilling for more oil in recent years, more output from Russia and the rumours that oil group Opec will end it’s restriction on production.
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On Monday, the average UK forecourt prices stood at £1.29 per litre for unleaded and £1.33 for diesel - the most expensive both have been since September 2014.
Now, the new national price cap means drivers will pay no more than £1.25 per litre for unleaded and £1.28 for diesel at its 318 filling stations.
Asda chief executive Roger Burnley said: "We know that the cost of living is centre of mind for our customers and we will always do whatever we can to reduce that burden.
"Customers can trust us to lead the way when it comes to lowering the price of fuel and putting cash back in their pocket."
RAC spokesman Rod Dennis said: "At last, retailers have done the right thing and started to cut prices at the pumps.From our data, we could see no justification for them holding on to savings that they have been benefiting from for three weeks.
"With petrol prices rising at their fastest rate in 18 years last month, millions of households and businesses will have been feeling the effect of having to spend more on what is an essential purchase for many. Today's cuts should bring some welcome relief.
"It is absolutely right that at times when wholesale prices are falling, forecourt prices follow suit."