Petrol drivers have been given some light relief just days into 2024 as data shows that fuel prices have dropped by 6p per litre.
Throughout December, the average price of petrol at UK forecourts has fallen from 146.7p per litre down to 140.6p.
This marks the second consecutive monthly price cut after months of high prices hammering the finances of Britain’s drivers.
It also signifies the cheapest costs for petrol since early February when prices spiked after the Russian invasion of Ukraine.
The RAC expects pump prices to drop even further
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The average price of diesel also fell, although drivers will only see a small reduction at the pumps, dropping from 154.3p to 149.2p.
The RAC said pump prices should continue to fall further, highlighting how the average supermarket margin on fuel was 13p per litre last month.
However, this is more than double what it was in 2021, with the Competition and Markets Authority (CMA) slamming retailers for profiteering.
In July, the CMA said pump prices are lower in Northern Ireland compared to the rest of the UK because of an effective fuel checker system, allowing drivers to find the cheapest prices near them.
Simon Williams, fuel spokesperson for the RAC, said drivers will be relieved at the news that petrol and diesel prices have fallen.
He added: “While we’re starting the year paying much less at the pumps than we have done, it’s still galling to know that drivers aren’t being charged a fair price in comparison to Northern Ireland where the very same petrol and diesel is at least 5p a litre cheaper.
“It’s surely impossible to argue that competition is working properly if prices are so vastly different in two parts of the UK.
“We continue to call on the biggest retailers to play fair with drivers and lower their prices to match what’s being charged in Northern Ireland.”
The expert also called on Energy Security Secretary Claire Coutinho to crack down on supermarkets taking advantage of motorists.
Analysis from the CMA found that drivers were overcharged by a staggering £900million in 2022 by supermarkets.
Claire Coutinho has warned supermarkets of the repercussions they face if they do not offer fair prices, with massive fines being threatened.
The RAC has urged the MP for East Surrey to question why supermarkets do not apply prices seen in Northern Ireland across the rest of the UK.
Motorists and experts are also calling on the Government to make an announcement on their future plans for the rate of fuel duty.
There is currently a cut of five pence per litre on fuel following the Chancellor’s intervention after the outbreak of war between Russia and Ukraine.
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Petrol prices have not been this low since February 2022
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There are fears that the Government will allow the cut to expire in the Spring Budget in March, forcing prices back up again for motorists.
At a recent press conference, Richard Tice, the leader of Reform UK, unveiled plans to cut the rate of fuel duty by 20p per litre to help drivers at the pumps.