The supermarket giant said it has reduced the price of a litre of petrol by 3p to £1.23 at its 322 petrol stations.
Diesel remains unchanged at £1.27 per litre.
The announcement will be a welcome relief to drivers embarking on day trips this weekend, with many areas expected to enjoy warm and sunny weather.
Asda senior fuel buyer Dave Tyrer said: "With wholesale costs falling, we're pleased to be able to pass these savings on to our customers."
AA fuel price spokesman Luke Bosdet said the price cut would "cheer up drivers as the summer comes to an end".
Average UK petrol prices have remained virtually unchanged at around £1.28 per litre since mid-July, while diesel stands at £1.32 per litre.
RAC fuel spokesman Simon Williams said: "This is a very welcome but long overdue cut. Drivers have been paying more than they should have for weeks due to savings in the wholesale price of petrol which retailers have failed to pass on until today.
"We pointed out this at the start of the month, yet it has taken them over a week to react. In the meantime they have all benefited nicely while drivers continued to pay more than they should.
"There have been times in the past when retailers have acted more transparently by passing savings brought about by lower wholesale prices, but unfortunately this won't go down as one of them.
"This cut should, however, lead to the average price of petrol falling as a result of all retailers following suit.
"Currently, unleaded is £1.28 a litre on average around the UK so this will help to move it towards £1.25 in the next week or so, saving drivers more than £1.50 every time they fill up."