Petrol prices have fallen to their lowest level for three years, with the average price for a litre of unleaded costing about £1.35.

The RAC has said lower global oil prices and a stronger pound were the main reasons prices had fallen.

The figure is considerably lower than in July 2022, when petrol prices hit a record high of almost £1.92 per litre when oil prices surged following Russia’s invasion of Ukraine.

Simon Williams, fuel spokesman for the RAC, told the BBC that petrol prices could fall further.

"We believe there is scope for pump prices to come down further in the next few weeks to reflect the lower wholesale costs retailers are paying when they buy fresh fuel stocks," Mr Williams said.

Depending on where drivers were filling up, he said people could be "paying as little as £1.26 for a litre of unleaded - making the cost of refuelling a typical family car come in at under £70".

The average price of diesel is around £1.41 per litre which is also close to a three-year low, based on data from the Competition and Markets Authority (CMA).

The falling price of fuel will come as a boost to drivers, who have been hit hard in recent years by higher prices for all consumer goods.

FTSE 100

The UK's flagship share index, the FTSE 100, was up 40-points at 8,309 shortly after opening this morning.

Brent crude oil futures were down 2.26%, trading at $71.80 a barrel.

Companies reporting today

CVS Group

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Halma

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JD Sports Fashion

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Pennon Group

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