British supermarket, Tesco has said that it is planning to slash prices of its everyday food essentials by some £200 million and also introduce a 'Fuel Save' scheme in order to help households facing pressure eon expenses.

Under the new 'Fuel Save' scheme, the Clubcard holders will be able to save 2p-20p a litre on petrol based on spending. UK's biggest supermarket has also said that it will focus on improve quality and bring forward a refurbishment of hundreds of its 'big box' stores in the country.

Tesco and Morrisons have both lost market shares in recent times as discount chains are increasing expanding their presence in the market. Tesco has said that it will focus on competing with discounters Aldi and Lidl as they have been outperforming traditional Big Four of Tesco, Asda, Sainsbury's and Morrisons in recent times.

Philip Clarke, the head of the UK's biggest supermarket said that the company will spend £200 million on price cuts, speed up store openings. Discount retailers as well as Waitrose and Sainsbury's were able to record an increase in sales in the segment while Tesco and Morrisons struggled to sell in the market.

Tesco said that it is planning to spend millions developing its website as it already generating sizable business for the company. The groceries home delivery business generated food sales of £2.5billion a year and a massive £127 million profit during the previous year.

Clarke said, "Businesses which don't change with the times don't succeed and we did not change enough, not enough for our customers. But now we have changed."