Petrol prices have fallen to the lowest level since October 2021, new figures show.

The AA said the average price for a litre of the fuel on Wednesday was 140.0p.

The last time petrol was cheaper was on October 13 2021, when it averaged 139.6p per litre.

Diesel averages 147.8p a litre, which is the lowest price since August 2023.

This time last year, petrol and diesel averaged 149.5p and 171.9p a litre respectively.

AA fuel price spokesman Luke Bosdet said: “While the dramatic improvement in pump prices gives big savings to families and businesses, and also redirects millions of pounds from fuel sales potentially back to the high street, pump prices remain historically very high.

“Before Covid and the Ukraine war, the worst drivers faced was the 142.5p record set in April 2012.

“The danger is that current pump-price levels are baked in as the new normal.”

RAC fuel spokesman Simon Williams said: “Prices at the pump have fallen more than 50p since the record high of 191.5p was set in early July 2022, a saving of £28 a tank, with a complete fill-up for a 55-litre family car now costing under £77.

“We expect prices to continue coming down as the wholesale cost of petrol is still low enough to merit further reductions.

“Retailer margins remain far higher than normal, particularly at the supermarkets where RAC data shows an average of 10p a litre is being taken on unleaded compared to 3.5p in 2019.

“We urge the supermarkets to restore drivers’ faith in competition and transparency by lowering their prices to fairer levels.”