Sainsbury’s has sparked the latest price cutting war by announcing it will reduce its forecourt costs by 3p a litre at all of its 266 petrol stations.

Asda, Tesco and Morrisons have all announced price cuts in recent weeks.

Last week the AA said that UK petrol prices had fallen 4p and diesel by more than 3.5p in the past month.

Sainsbury’s is backing its 3p cut with a sales promotion which offers a further 5p off per litre voucher for customers spending £50 in stores or online.

Richard Crampton, Sainsbury’s head of fuel, said: “We know that fuel continues to be a big part of many household budgets and we are committed to helping our customers cut down on cost whenever we can. “Wholesale fuel prices have dropped across Europe and we are delighted to pass these savings onto our customers.”

Morrisons is slashing prices by 12p a litre for shoppers who spend £60 at the checkout until May 27, customers will get a voucher redeemable at its 300 forecourts until June 3.

Tesco is offering a 5p off per litre voucher when customers spend £50 or more in store or online on groceries until Friday 25th May.