Supermarket giant Asda plans to slash the price of petrol today to its lowest level since February.
And Sainsbury's has responded by anouncing that from tomorrow they "will be cutting fuel prices in many of our stores by up to 2p per litre".
Asda said that drivers filling up at its 192 filling stations would pay a maximum of 128.7p a litre for petrol and no more than 136.7p a litre for diesel.
The company said its income tracker showed transport costs continued to be the main cost pressure on households, with UK families £15 a week worse off than they were this time last year.
Jeremy Walton, Asda's head of petrol trading, said: "We're committed to doing everything we can to help lower the cost of living for our customers, and today's move shows that Asda is once again leading the way in reducing the price at the pump."
Sainsbury's said: "We are doing everything we can to help our customers save money. We regularly check our prices against those of competitors to ensure we always provide customers with great value."