The motoring organisation said the 2p cut in petrol prices in May means there have been three consecutive months of falling prices, leading to the lowest average pump price in almost four years.
Meanwhile, diesel also came down by 2p, resulting in the average pump price falling below 139p for the first time since 28 September 2021.
The 2p-per-litre drop in both fuels means another £1 was shaved off the cost of filling a 55-litre family car last month. A full petrol fill-up is now £72.74, while filling a diesel car costs £76.13. Since February, the cuts have saved drivers around £4 per tank.
Simon Williams, the RAC’s head of policy, said that while the news was good for motorists, it is worth remembering that prices are lower today because the 5p duty cut, first introduced in March 2022, is still being applied.
“If it wasn’t for the fuel duty freeze, prices could well be much higher,” he added.
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Price falls caused by Trump
Despite conflict in Ukraine and Gaza, oil prices have tumbled from highs of almost $128 per barrel in early 2022 to below $65.
Fears of economic recession caused by Trump’s tariff uncertainty have pushed prices down further.
Williams said there is scope for retailers to cut petrol prices further, given the price of oil.
“Although prices have been moving downwards for the last three months, our analysis of wholesale costs shows there’s still plenty of room for retailers to do more. With oil averaging $64 a barrel throughout May, we believe the average price of petrol ought to be under 130p and diesel under 134p,” he said.
Saving money on petrol
Customers who want to find the cheapest petrol can use the free myRAC app or the PetrolPrices.com app to find the cheapest petrol near them.
Some supermarkets also offer cheaper petrol to shoppers or entice them with points on spending.
Making your car more fuel-efficient by inflating tyres to the correct pressure and clearing weighty clutter will also help your fuel to last longer.
