Fuel prices are falling faster than at any other point 2024, new figures show, as the RAC says there is still “scope for further price cuts”.

Average prices for petrol and diesel have fallen by nearly 7p per litre on forecourts over the last month, reaching their lowest level in nearly three years.

Typical per-litre petrol prices have fallen from 142.9p to 136.2p, while diesel has dropped from 147.7p to 140.9p.

That means the cost of filling a 55-litre family car is almost £4 cheaper than a month ago.

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RAC fuel spokesman Simon Williams said: “It’s really encouraging to see pump prices coming down so rapidly, which we know is as good for drivers’ wallets as it is for keeping the headline level of inflation in check.

“Of course, global oil prices and even the strength of the pound can fluctuate wildly and that’s something completely out of drivers’ control.

“But with the cost of filling up making up a sizeable chunk of many households’ overall monthly spending it makes sense to stretch every pound spent on fuel as far as possible.

“Driving efficiently, for instance, with a light right foot and by changing up to as high a gear as possible, is the best way to do this, along with paying less to fill up in the first place.

“Based on wholesale pump prices, which is what retailers pay to buy the fuel in the first place, we know there’s scope for further price cuts so we very much hope that within the next few weeks we’ll see pump prices reach their lowest levels in three years.”

The RAC attributed the fall in prices to a combination of a drop in oil prices to 73 US dollars per barrel amid lower global demand, while the strength of the pound against the US dollar means UK fuel retailers get better value on the wholesale market.

Calls for pay-per-mile schemes in the UK

The welcome news comes as Chancellor Rachel Reeves is being urged to impose a pay-per-mile scheme on UK drivers to avoid a “black hole” from lost fuel duty revenue.

Public transport charity Campaign for Better Transport (CBT) issued the plea, claiming it would have public support.

It is proposing that drivers of zero emission vehicles (ZEVs), such as electric cars, should be charged based on how far they travel.

Under the plan, drivers with a ZEV before the implementation date would be exempt, incentivising the switch to electric motoring.

Duties levied on petrol, diesel and other fuels generate around £25 billion a year in revenue for the Treasury.

This figure is expected to dwindle as more drivers transition from traditionally-fuelled cars to ZEVs.

But successive governments have found the prospect of introducing per-mile charges – known as road pricing – to be too politically toxic.