AA welcomes petrol price drop but warns further cuts unlikely

But the AA has warned a further dip in prices is unlikely.

Average petrol prices in the UK fell 5.49p a litre between mid-September and mid-October – the biggest monthly fall since the 11.5p petrol price collapse in November 2008, it said.

Petrol now averages 132.16p a litre while diesel has dipped from 142.50p a litre to 139.12p.

The AA said the reductions have cut £2.74 from the cost of refuelling a small petrol car and £3.84 off the bill for a Ford Mondeo-sized petrol vehicle.

With the UK consuming typically 1.55 billion litres of petrol a month, the 5.48p average price reduction has diverted about £2.83m a day to the high street and other consumer spending.

Comparing average regional pump prices for mid-October, Northern Ireland is most expensive for petrol at 132.9p a litre – despite seeing the biggest fall over the past month. London, the north of England, and Yorkshire and Humberside are jointly the cheapest areas at 131.9p.

Despite a 3.3p-a-litre reduction since mid-September, Scotland remains most expensive for diesel at 140.1p a litre while London is cheapest at 138.6p.

AA president Edmund King said: “A more than £2.50-a-tank cut in petrol costs for families is a dramatic improvement on its own. But, heading into winter with cars using more fuel, the timing couldn’t be better.

“Alongside Asda, Sainsbury’s decision to fully reflect the fall in wholesale prices has been a huge benefit for drivers and businesses. However, the AA is also encouraged by the growing band of non-supermarket retailers challenging the pricing of other supermarkets whose prices in many places are far less generous.”