Petrol prices cut by supermarkets for Christmas

Motorists have been handed an early Christmas present by supermarkets who have cut their fuel prices.

Asda and Tesco both announced that from Wednesday petrol and diesel prices on their forecourts would be reduced.

The supermarket giants will slash 2p a litre from petrol and 1p off their diesel for the festive period.

At Asda customers will pay no more than 126.7p a litre for petrol and 134.7p for diesel, although there is no confirmation as to how long the price drop will last.

Asda petrol trading director Andy Peake said: "With Christmas just around the corner, and finances tighter than ever, we're pleased we can do our bit to make our customers' hard-earned cash go a little further."

For most petrol drivers it will save them an average 80p per fill up, while those driving diesel cars will save an average of 40p – enough for an extra mince pie or two.

The move has been made possible by the fact the wholesale value of fuel has hit its lowest rate since early November.

Pete Williams, head of external affairs at the RAC, was hopeful other retailers would pass on a similar saving.

He added: “Cheaper fuel is something motorists will widely welcome and comes ahead of both last-minute Christmas shopping this weekend, and the rush on the roads next week.”

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The pump price fall is more good news for drivers in December after Chancellor George Osborne's announcement in his Autumn Statement.

He said due to extra savings found elsewhere fuel duty would be frozen until 2015 with a planned rise in 2014 scrapped.