Asda has cut petrol and diesel prices by an average of 4p per litre nationwide, as new chief executive David Potts wastes little time putting his stamp on the struggling supermarket.

The reductions took effect at 5pm on Thursday across fuel stations attached to Asda’s larger stores, offering motorists savings of around £2.20 on a typical 55-litre tank.

The price cut is among Potts’ first customer-facing changes since taking the reins earlier this month, as he looks to win back shoppers following a prolonged period of falling market share and fierce competition from Tesco, Sainsbury’s and the discounters.

Earlier this week, the former Morrisons boss ordered Asda’s 1,100 store managers to open more staffed checkouts, spend more time on the shop floor and improve product availability.

Now, attention has turned to the forecourt, with Asda looking to strengthen its value credentials ahead of the crucial Christmas trading period.

Potts said: “When we get the fundamentals right, customers notice.”

He added that cutting fuel prices was part of a broader effort to improve value across the shopping trip, alongside the supermarket’s food and clothing ranges.

The decision comes as falling wholesale fuel costs put pressure on supermarkets to pass savings on to motorists.

According to the AA, average UK petrol prices have already fallen by around 5p per litre since early October, with further reductions potentially on the way as wholesale costs continue to ease.

Asda has long used competitive fuel pricing to attract customers to its larger stores, making the latest reduction a potentially useful weapon as supermarkets battle for festive spending.

The cut also follows Asda’s recent investment in grocery prices, including reductions across 1,000 products held until after Christmas.

For Potts, the challenge now is to translate sharper pricing and improvements to the shopping experience into sustained sales growth after more than two years of difficulties at the supermarket.

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