Asda has cut its fuel prices amid a fall in wholesale costs.

The supermarket giant said it has reduced the price of a litre of petrol and diesel by up to 2p.

The announcement means drivers will pay no more than £1.20 per litre of petrol and £1.24 for diesel at Asda’s 322 filling stations.

This is the firm’s lowest price for petrol since April.

Asda senior fuel buyer Dave Tyrer said: “With Christmas just around the corner, we’re pleased to be able lower the cost of fuel and pass these savings on to our customers.”

Earlier this week the RAC accused fuel retailers of refusing to pass on a fall in wholesale prices, claiming drivers were being overcharged by more than 5p per litre for petrol and 4p for diesel.

Government figures published on Tuesday showed the average cost of fuel in the UK was £1.26 for petrol and £1.30 for diesel.