Sainsbury, Tesco and Asda are in the middle of a price war as they start dropping their petrol forecourt prices.
Asda customers will pay no more than 126.7 pence per litre (ppl) for unleaded and 129.7 ppl for diesel.
The key reason for the cuts is the strength of the pound against the dollar, according to an Asda spokesperson, with this being the first time prices haves fallen below £130p mark since January 2011.
Tesco recently released a poll showing that 85% of Brits said they would travel more within the UK if petrol prices were more affordable, with more than a third cutting down on family trips that involve long journeys.
“The combination of the strengthening pound and the fact that tensions in both Ukraine and Iraq have not caused supply issues means wholesale prices have begun to ease again,” Simon Williams, an RAC spokesman said.
“The impact of the shale oil extraction in the US is also causing global oil prices to reduce due to more product becoming available in the market, which in turn reduces reliance on importing oil from the Middle East.
“But falling wholesale prices don’t always lead to cheaper forecourt prices, so it’s good news for motorists that this reduction is being passed on so quickly at the pumps. Cheaper fuel is good for individual motorists, businesses and the economy.”