Asda is to cut 2p per litre off fuel (ppl) at its 301 filling stations amid a drop in wholesale prices.
Motorists will pay no more than 114.7ppl for unleaded, while diesel will be capped at 116.7ppl.
The lower prices be effective from Tuesday.
Asda's head of petrol trading, Dave Tyrer, 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 114.7ppl on unleaded and 116.7ppl on diesel will be welcomed by the millions of drivers who have seen fuel prices climb over the last 12 months."
Latest Government figures show the average price of petrol in the UK is 120ppl, while diesel is 122.9ppl.
Fuel prices in recent weeks have been higher than at any point since December 2014.
The rise has been driven by an increase in the cost of oil and the lower value of the pound against the dollar following the Brexit vote.
But the cost of petrol heading to forecourts has fallen on average by 1.7ppl in the past four weeks, according to the AA.
Last week, wholesale petrol averaged 33.8ppl, compared with 35.5ppl in mid-February.
Average diesel wholesale prices have hit a plateau of about 35.5ppl over the past month.