ASDA has announced it is reducing fuel prices at all its filling stations as it introduces a national price cap.

The supermarket chain will cap prices at 110.7p per litre for unleaded petrol and 112.7p per litre for diesel, starting on Tuesday.

The price change will apply to all 294 Asda filling stations across the country.

Asda’s latest income tracker for September shows that year on year, fuel prices have increased by 1.4 per cent.

Since Britain voted to leave the EU in June, motorists have seen fuel prices rise due to the sharp fall in the value of the pound.

September's price rise is the first time in more than three years that the data has shown an increase in vehicle fuel prices from the previous year. 

Asda senior director for petrol Andy Peake said: “Today’s latest move shows that Asda is once again leading the way in reducing the price at the pumps to help the millions of motorists across the UK.

"Our new national price cap of 110.7p on unleaded and 112.7p on diesel will be welcomed by the millions of drivers who have seen fuel prices rise since Brexit.”