Petrol and diesel prices are falling at their fastest pace this year in a boost to motorists as the switch to electric vehicles stutters.

Both fuels are nearly 7p cheaper than a month ago, according to the RAC, with the average price of unleaded down to 136.15p, saving drivers nearly £4 when filling up the tank.

Diesel has dropped to 140.87p on average, leaving the price of both fuels at their cheapest in nearly three years.

The last time fuel prices dropped so quickly was between November and December last year.

The RAC expects average pump prices for petrol could dip to as low as 132p and diesel to 138p within the next fortnight 

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.”

He added: “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 figures come as data last week showed the takeup of electric cars is “now on a continual downward trajectory”, according to Brussels-based car industry body the ACEA.

It said fully electric vehicles made up 12.5pc of all new car registrations in the EU from January to July, which was well below the level needed to be compliant with new CO2 targets for cars and vans that come into effect in 2025.

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