Tesco and Asda seem to have sparked a price war by cutting 2p off a litre the price of petrol, according to telegraph.co.uk.

It is thought that the supermarkets are using fuel as a 'loss leader' to draw in customers. The move is in stark contrast to petrol prices earlier this year, which were at a record high.

Asda confirmed today (Wednesday October 24th), that customers will pay no more than 133.7p a litre for petrol. Diesel will remain at a price of 139.7p however.

The supermarket's head of petrol trading, Jeremy Walton, told dailymail.co.uk: "We always aim to be the first retailer in each part of the country to drop prices when costs are falling and the last to put them up." 

The price cut announcement was made by Asda this morning. Tesco soon followed suit - saying they will bring in the 2p cuts too as of tomorrow.

Companies who want to be even more fuel efficient may want to try systems such as fleet management tracking, which will help cut waste through forward and current journey planning.

The AA petrol price index said the cost of petrol was 1.3p down this month, compared to September, at 138.9p. Asda is consistently labelled as the cheapest fuel retailer, according to AA, and has sparked similar price wars in the past.