Several UK supermarkets are set to slash their petrol and diesel prices due to fuel duty being cut in Chancellor Rishi Sunak's Spring Statement.

This fuel duty cut was announced to combat soaring prices at petrol pumps after Russia’s invasion of Ukraine sent costs even higher.

5p per litre reduction is in place until March 2023, which is the biggest rate cut on record.

That came into effect at 6pm yesterday (Wednesday, March 23) and as a result, several supermarkets have reduced their prices.

Asda, for example, has cut prices by 6p per litre following the rule change.

Bracknell News: Asda and Sainsbury's have dropped their fuel prices by 6p per litre (PA)Asda and Sainsbury's have dropped their fuel prices by 6p per litre (PA) (Image: PA)

In a statement, they said they would be passing the fuel duty cut onto their customers, with the reduction in price including a 1p reduction in VAT.

Like Asda, Sainsbury's also dropped petrol prices by 6p per litre.

CEO Simon Roberts said: "Sainsbury’s will continue to sell through stock it purchased while the higher fuel duty was in effect but is lowering the price for customers from tonight, so that they can benefit from the Chancellor’s announcement sooner."

Morrisons was also getting in on the act, dropping their petrol prices by 5p per litre.

In a statement they said: "Following the chancellor’s announcement regarding the 5p duty reduction on fuel, prices at Morrisons petrol station pumps will reduce by 5 pence at 6pm this evening".

Criticism for Sunak for not going far enough

The insurance company RAC argued that the positive impacts of the fuel duty cut would not immediately be apparent.

As reported by Yahoo News, RAC head of policy Nicholas Lyes said yesterday: "With the cut taking effect at 6pm tonight drivers will only notice the difference at the pumps once retailers have bought new fuel in at the lower rate.

"There’s also a very real risk retailers could just absorb some or all of the duty cut themselves by not lowering their prices.

"Temporarily reducing VAT would have been a more progressive way of helping drivers as the tax is applied at the point the fuel is sold."