Asda has cut the price of petrol by 2p a litre and diesel by 1p and challenged other retailers to follow suit.

The grocer said the maximum price drivers will pay at any of its 179 forecourts is 102.9 for unleaded and 103.9 for diesel. It said it was passing on the benefits of falling cost prices and the weakening US dollar.

David Miles, Asda’s commercial director said: “Once again we have led the way by passing on the benefits of lower costs to our customers as quickly as possible. While others try to bamboozle drivers with money off vouchers and plastic points, we prefer to lower our prices.

“Companies that are charging more than 107p for a litre of fuel are inflating their profits at the motorist’s expense.”

Last month Asda launched an interactive Google map on its website to enable drivers to locate their nearest Asda forecourt.