Drivers have been treated to a drop of about £1.50 a tank after fuel prices dropped from record highs seen in recent months.
Pump prices are down to 188.76p per litre for petrol and 196.96p per litre for diesel. Although this is good news, prices do remain historically high. In September 2021 we saw prices as low as 136.48p per litre for petrol and 138.58p per litre for diesel.
The AA says if prices continue to drop, a full tank could be around £10 cheaper by the end of August.
Why did fuel prices go so high?
Contrary to what many people think, fuel prices were rising before the war in Ukraine started in February, the fallout from Russia's invasion of Ukraine just made things worse.
The US has announced a complete ban on Russian oil imports. The UK is to phase out Russian oil by the end of the year, and EU leaders say they will block most Russian oil imports by the end of 2022.
This means demand for oil from other producers has increased, leading to higher prices.
There are reports that some petrol stations are keeping diesel prices articifially high, because business drivers using diesel cars are less likely to shop around for lower prices.
RAC fuel spokesperson Simon Williams said: "With oil dropping by 10 a barrel yesterday causing wholesale prices of both petrol and diesel to fall further, even more pressure is now on the supermarkets to act and treat drivers fairly.
"We can guarantee retailers will be rushing to buy new stock today at these low prices, but they will no doubt still remain reluctant to reduce their forecourt prices. If we don't see a significant supermarket cut in the next few days it will be nothing short of scandalous.
"And, even if retailers eventually do the right thing, we still need further help from the Government to make the cost of driving more affordable as so many people are being financially impacted by the record high prices. Perhaps a change at No 11 will finally lead to the fuel tax cuts we've been calling for."
Click here to see the fuel prices in your area.
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