Supermarket chain Asda ramped up the petrol price war by slashing another 2p at the pumps.

As rivals quickly followed suit, the AA waded in and said drivers deserved a 10p cut.

While this is the third price drop in as many weeks taking the total to 6p off a litre of fuel, wholesale prices are down by 10p.

AA President Edmund King said: “It took 12 days for the peak European wholesale price to be reflected in a new record for petrol prices in the UK.

"It shouldn’t take much longer for dramatic falls in the cost of fuel to be reflected at the pumps.”

The latest round of cuts will take the price of unleaded at Asda down to 134.7p per litre for unleaded and 139.7p for diesel from today.

Last night Morrisons hit back with a 2p cut and said in some areas motorists would be paying as little as 134p for unleaded.

Both Tesco and Sainsbury’s announced similar cuts and Tesco said shoppers were getting an additional voucher for 5p off a litre by spending £50 in store or online.

Sainsbury’s said: “Competitive fuel prices are a great way for us to help shoppers to meet their weekly budgets.”

Asda said it was the only supermarket to have a standard price across all its forecourts while rivals priced pumps regionally according to the competition.

Andy Peake, Asda’s director of petrol trading added: “Unlike other retailers we have a national pricing policy, meaning that no-one filling up at Asda, from Edinburgh to Eastbourne will be forced to pay a premium for their fuel.”