Supermarket giant Asda has started a price war by slashing price of petrol by 2p and diesel by 1p-a-litre. 

Earlier this month motorists witnessed arise in fuel prices following an increase in fuel-duty by government.

Asda claimed that it had trimmed down the fuel prices to the lowest in UK. Motorists will now pay a maximum of 102.9 for unleaded and 103.9 for diesel at Asda stores.

Tesco also hacked 2p-a-litre at most of its petrol stations. Tesco further said that all of its petrol stations will witness a fall of 1p-a-litre in the prices of unleaded as well as diesel.

Tesco has also said that those who would spend £50 in its stores will be provided with a discount of 5p-a-litre at its pumps.

David Miles, spokesman for Asda, said, "Once again we have led the way by passing on the benefits of lower costs to our customers as quickly as possible."

Other retailers are also expected to follow suit.