Drivers are paying the lowest average price for petrol in more than two and a half years, according to latest statistics from the AA.

The AA Fuel Price Report says average pump prices for a litre of unleaded petrol fell from 132.16p/litre in mid-October to 130.44p/litre in mid-November (see our Cheap Petrol & Diesel guide to compare fuel prices).

The cheapest prices for supermarket petrol in towns and cities start at 126.7p/litre in areas with strong competition. In London, non-supermarket forecourts in Streatham and Mortlake were selling petrol at 124.9p/litre last week.

But in areas without much competition, such as Clacton in Essex and Newark in Nottinghamshire, drivers are paying up to 131.9p/litre.

Diesel also continued to fall, down from an average of 139.12p/litre last month to the current average of 137.78p/litre.

Unleaded petrol reached a high of 138.38p/litre in the second week of September before the end of the Syrian chemical weapons crisis and the stronger pound kick-started a fall in wholesale prices. At the same time, diesel prices rose to a late summer high of 142.88p/litre.

Martin Lewis
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Getting more for your money

AA president Edmund King says buying £30 worth of unleaded fuel gives you 23 litres today, compared to 21.7 litres in September – a boost equal to an extra 10 miles.

He says: "A family with two petrol cars was spending the equivalent of £252.54 a month on fuel in September, now it's £238.05.

"A company with 100 Ford Mondeos was spending typically £10,000 to fill them up with diesel in mid-September, now it's around £9,640.

"Last week, it was officially recognised that lower pump prices helped to bring inflation down to 2.2%. You cannot understate the importance of lower pump prices."

While drivers will welcome lower motoring costs, don't assume you're getting the best deal – always do a price comparison before you buy. The Petrolprices.com website tells you the cheapest place to fill up, based on your postcode.

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