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Motorists are paying the lowest average petrol prices for more than two and a half years, according to the AA.

The average price at the pump has fallen from 132.16p a litre in October to 130.44p.

UK prices have fallen from a high of 138.38p in September, helped in part by a stronger pound.

The cost of diesel has also fallen from 139.12p a litre in mid-October to 137.78p in the middle of this month, the AA report showed.

The fuel price data is supplied by research firm Experian Catalist.

The cheapest price for supermarket petrol in built-up areas ranged from 126.7p a litre in towns with strong competition to 131.9p in those without, usually small market and coastal towns, the report said.




"You cannot understate the importance of lower pump prices," said AA president Edmund King.

"That is why, when the independent retailers say they would get significant savings from delaying the payment of fuel tax, the AA wholeheartedly supports the move if it helps the remote rural and other small petrol stations to survive.


"But in the many towns where our members and other drivers complain about pump prices being 5p a litre higher than a few miles up the road, extra relief for the retailers should be reciprocated with fairer pump prices."

There are warnings that prices could rise again soon.