Fuel prices are almost at a three-year low as average cost of petrol and diesel across the UK is nearly 7p cheaper than a month ago

Fuel prices are falling faster than at any other point this year.

Average prices for petrol and diesel across UK forecourts are nearly 7p per litre cheaper than a month ago, sinking to their lowest level in almost three years.

Typical per-litre petrol prices have fallen from 142.9p to 136.2p, while diesel has dropped from 147.7p to 140.9p. 

It means the cost of filling a 55-litre family car is almost £4 cheaper than a month ago.

The RAC attributed the fall to a combination of a drop in oil prices to $73 a barrel amid lower global demand, while the strength of the pound against the US dollar means UK retailers get better value on the wholesale market.

The RAC said it expected prices to drop further based on wholesale pump prices (file photo)

The motoring company expects average pump prices to fall to a three-year low as early as the end of this month.

It said average prices could sink to 132p for petrol and 138p for diesel.

Spokesman Simon Williams said: ‘It’s really encouraging to see pump prices coming down so rapidly, which we know is as good for drivers’ wallets as it is for keeping the headline level of inflation in check.’

Mr Williams added: ‘Based on wholesale pump prices… we know there’s scope for further price cuts so we very much hope that within the next few weeks we’ll see pump prices reach their lowest levels in three years.’