Petrol and diesel prices have stooped to a three-year low in the UK thanks to falling oil costs and a strengthening pound, according to motor group RAC.
Average petrol prices across the country’s forecourts hit 135.87p on Tuesday, RAC said, having fallen from a peak of 192p in July last year.
RAC added there was scope for fuel prices to fall further over the months ahead as retailers pass on lower wholesale costs.
“A relatively low oil price, caused by lower demand globally, and a relatively strong pound are the two factors that are contributing to pump prices falling,” spokesperson Simon Williams said.
“To see pump prices drop to this level is really positive news, both for households who depend on their vehicles for getting about, and for the wider economy - as there’s a clear link between the cost of fuel and the headline rate of inflation.”