Asda slashes prices by 3p
Is the cost of running your car getting a little too expensive?

Well, for a change, there's some good news as motorists are enjoying some fuel and insurance price cuts.

Asda is slashing 3p off fuel at its filling stations, meaning petrol will fall to 135.7p and diesel to 139.7p.

The supermarket giant, well-known for priding itself on good value, says it is cutting prices due to a drop in the price of crude oil worldwide.

The move has sparked a price war among supermarkets as Morrisons has also snipped its petrol and diesel prices by 3p as have Sainsbury's and Tesco.

The latest price moves come just weeks after the Office of Fair Trading launched a report into the prices motorists are paying at the pumps.

Meanwhile, comparison site Moneysupermarket.com has found the average car insurance premium has fallen 10 per cent to £478.

The firm looked at more than 16 million quotes over the last 12 months and has found that on average, insurance prices are now falling after reaching a high of £525 in 2011.

Moneysupermarket.com's Kevin Pratt said: "The main factor influencing the cost of car insurance is competition in the market between insurers. A few key insurance providers are looking to take on new business and are willing to offer low premiums to attract customers. While this competition continues, drivers will benefit but there is no guarantee how long it will last."