Average petrol prices across the UK are now at their lowest point since Christmas 2009.
The January AA Fuel Price report shows that a family with two petrol cars is now spending around £50 less on filling up compared to summer 2014.
A 60 per cent drop in oil prices has led to the cheaper costs, although there has been strong competition between supermarket pump prices as they aim to attract consumers.
UK petrol prices have dropped to 108.91p a litre, down 7.41p from mid-December levels of 116.32p a litre.
There has also been a drop in diesel prices of 6.05p, now averaging 116.11p a litre across the country, compared to 122.16p in the previous month.
Some industry experts are predicting that prices at the pump could drop to less than £1 per lite, if the price of oil continues to decrease.
"A £50 cut to a two-car family’s monthly petrol bill is a huge boost after more than five years of squeeze on the necessities of modern life, including fuel," said Edmund King, the AA’s president.
He added the ongoing price war between supermarkets could lead to further cuts for motorists, especially as many retailers have not seen any loyalty with customers.
"Price-matching across a locality takes away the incentive to go specifically to a supermarket for fuel – unless it has rock-bottom prices," explained Mr King.
Motorists living in remote areas could also benefit from the recent European Commission approval of the new rural fuel tax cut. The fuel duty relief of 5p a litre for remote rural communities on the UK mainland could lower fuel bills for many.
Posted by Fred Mason.