Three of the UK's supermarkets are to cut their fuel by 3p a litre.
Tesco led the way by cutting its petrol and diesel costs, with Sainsbury's and Asda following in their wake.
The move comes after oil prices fell following the release of emergency oil reserves by the International Energy Agency last week.
The cuts were welcomed by the RAC and hopes were expressed that there would be reductions at the pumps.
Asda said its reduction would mean none of its customers would pay more than 130.7p a litre for petrol or more than 134.7p a litre for diesel. The good news for motorists continued when Morrisons announced that its petrol and diesel prices would also be cut by 3p a litre.
RAC motoring strategist, Adrian Tink, said: "This looks like it's the start of price war at the pumps which can only be good news for motorists.
"Our motoring report this week showed the detrimental impact high fuel prices are having on family life, with people having to cut back on visiting family, taxiing children and maintaining their social life.
"These cuts will certainly help those struggling but the price of fuel is still eating away into over-stretched family budgets."
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