They are currently offering motorists the cheapest fuel in the city, with unleaded on sale for 105p per litre and diesel for 117p.

The announcement prompted a flurry of price reductions from rival fuel retailers.

Morrisons’ prices are closely followed by rival supermarket Asda, who are selling unleaded fuel for 106.9p per litre and 118.9p for diesel.

Sainsbury’s prices are currently sitting at 108.9p for a litre of unleaded fuel, with diesel priced at 120.9p.

Motorists are paying slightly more for their fuel at Tesco stores in the city as unleaded petrol costs 109.9 pence per litre and 121.9 for diesel.

However, Tesco have also extended its petrol promotion for another week to compete with their rivals.

Customers now have up until September 28 to spend £50 or more either in store or online and receive a coupon giving them 5p off every full litre of petrol or diesel they buy, up to a maximum of 100 litres.

Peter Cattell, category director for petrol from Tesco, said, “Our petrol promotion has proven really popular, so we wanted to give those who maybe haven’t had the opportunity to benefit, to do so. It also gives those who have already enjoyed cheaper petrol a further chance to cut their fuel costs.”

Fuel retailers are also fighting back with BP and Shell both cutting costs for customers.

The Shell garage at Kingsway East is charging petrol at 106.9p per litre and diesel at 120.9p per litre.

At BP on Kingsway West, motorists are paying 110p per litre for unleaded and 123p per litre for diesel.

A spokesman for BP said the company would be dropping prices by as much as 3p a litre at the majority of their 300 company-owned sites across the country, but explained that both the sites in Dundee were independently owned and “could set the price themselves. BP just supply the fuel and the branding.”