Four major supermarkets are cutting the price of petrol and diesel by up to 2p a litre from today - their lowest levels since January.
Asda, Tesco, Sainsbury’s and Morrisons are slashing pump prices for the second time this week in response to lower wholesale fuel costs.
Asda, which started a forecourt price war when it dropped prices on Tuesday, said customers would pay no more than 131.7p a litre for petrol and 135.7p a litre for diesel across the country.
The AA said that Britain's drivers are victims of a 'postcode lottery'
Supermarkets have slashed 2p off the price of petrol - their lowest levels since January
Mark Todd of Morrisons said: ‘Wholesale prices are continuing to fall and that’s great news for customers because we’re able to keep passing these savings on to them.’
AA president Edmund King said the price reduction gave drivers ‘a breath of optimistic spring air’.
Supermarket cuts had already helped push the average price of petrol down to 136.89p a litre earlier this week - 3.02p lower than a month ago.
With wholesale fuel prices falling, the AA said yesterday that average petrol prices could soon fall to about 134p a litre.
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The average UK price for unleaded petrol has fallen 2.5 per cent in the past month - only half of the fall in the wholesale price.
At present, the cheapest petrol in the UK is in London at 136.1p a litre on average, while the most expensive is in Northern Ireland (137.8p a litre).
Northern Ireland also has the dearest diesel (142.8p a litre), while Yorkshire and Humberside has the cheapest (140.8p), the AA said.
Mr King said: 'Last April UK petrol consumption fell. In October it did the same.
'And in February the UK sold the lowest volume of petrol in 23 years of recording.
'In the past 12 months, oil and fuel price speculation has swung back and forth through the fuel market like a wrecking ball, smashing family budgets, pulverising fuel demand, and rocking the foundations of fuel retailer and other business viability.'
'The last 12 months have shown pump price volatility is more acute than ever, driven largely by speculation.
'At least, though, the current prices are going in the right direction.'