Four months of rising fuel prices came to an end in June with the average cost of both petrol and diesel at the pumps falling sharply due to the cost of oil dipping to $62, according to RAC Fuel Watch.

The average price of unleaded petrol dropped 3ppl from 130.67ppl to 127.62ppl, and diesel was down 4.61ppl from 135.51ppl to 130.90ppl – the ninth biggest monthly reduction in the price of a litre of diesel since 2000.

The four big supermarkets cut their fuel prices by more than the UK average, with a 6ppl reduction in diesel, from 133ppl to 126.98ppl, but with petrol the cut was below the UK average at 2.67ppl, with a litre costing 124.08ppl by the close of June.

At the end of June Asda had the lowest priced petrol at its sites at 123.25ppl, slightly less than Tesco with an average of 123.65ppl. Asda also had the cheapest diesel at 124.70ppl with its next nearest competitor more than 2ppl more expensive.

Across the month oil rose nearly 5% (4.65%) from $63.28 to $66.22 and the pound gained 1% on the dollar finishing the month on $1.27, up from $1.26.

RAC fuel spokesman Simon Williams added: “Drivers should take heart from the fact fuel prices have gone down in June, but it’s hard to see another drop materialising with OPEC and its partners extending their production cut until March 2020. On top of that there is also talk of a trade deal being struck between the United States and China allaying fears of a global economic slowdown which may have led to lower oil prices and in turn cheaper prices at the pump.

“If we get through July without petrol and diesel going up it will be a good result for drivers at the start of the summer holidays.”