Motorists are paying the lowest price for petrol in four years according to latest RAC data.
Petrol prices fell 2p a litre in May, the third consecutive month of falling prices and the lowest average pump price in almost four years, according to RAC Fuel Watch.
Diesel, which also fell by 2p last month, moved below 139p for the first time since September 2021.
The 2p-a-litre drop in both fuels means another £1 was shaved off the cost of filling a 55-litre family car. A full petrol fill-up is now £72.74 while diesel is £76.13.
Unleaded has come down by more than 7p since the end of February (139.65p) and diesel by 8p (146.5p), saving drivers around £4 a tank.
A litre of supermarket unleaded is now down to 129p and diesel to 135p, both 3p lower than the UK averages.
Prices in Northern Ireland are even lower, with the average price a driver pays at 126.5p, almost 6p cheaper than the UK average. Diesel is 130.8p – nearly 8p cheaper.
Sainsbury’s store at Southgate in Huddersfield currently has some of the lowest pump prices, with a litre of petrol just 121.9p. Asda’s forecourt in Park Royal, London, is not far off at 122.7p.
The cheapest supermarket diesel on sale is at Sainsbury’s in Falls Road, Belfast, at 126.9p.
Simon Williams, RAC head of policy, said May was another good month at the pumps for drivers but warned that if it wasn’t for the fuel duty freeze, prices could well be much higher.
“For those prepared to shop around or use apps like myRAC, there are some excellent bargains to be had which can save several vital pounds on a full tank,” he said.
The RAC said analysis of wholesale costs showed retailers could do more. “With oil averaging $64 a barrel throughout May, we believe the average price of petrol ought to be under 130p and diesel under 134p.”
Despite the fall in prices the UK competition watchdog has said motorists are paying more than they should for petrol and diesel even as global energy market prices have fallen in recent months.
The Competition and Markets Authority (CMA) repeated its call for the new government to take action “as soon as possible” to end the “persistent” overcharging, six months after it found that motorists paid £1.6bn more than they should have last year alone.
It found that fuel margins – the difference between what it pays for fuel and sells it at – remain high compared to historic levels suggesting that overall competition in the road fuel retail market remains weak.
Trials are expected to begin shortly of the ‘Fuelfinder’ scheme called for by the CMA. Described as a “game changer for driver”, it should allow them to compare real-time fuel prices, via navigation apps, in-car devices and comparison websites. The aim is that it will boost competition between fuel retailers at the same time.
It will require more than 8,000 petrol stations to register with the scheme’s operator VE3 Global what fuel they have and the price they are charging. Any change in price has to be notified within 30 minutes of the change.
Stations or companies that fail to comply or report in a timely manner face fines of up to 1 per cent of their annual daily global turnover or 5 per cent of their daily turnover. The fines will be enforced by the CMA. The scheme is expected to be available to consumers by the end of the year.
