The average price of petrol has fallen below the 130p mark for the first time since the end of February 2011, according to the RAC, while diesel has also come down to its lowest price since mid-July 2012.

Quoting prices provided by Fuel Prices Online, which uses wholesale pricing information from Platts and retail pricing information from Experian Catalist, it said that on Sunday 19 January the average petrol price was recorded at 129.82p and diesel was at 137.27p.

With wholesale prices maintaining a price of around 101p a litre for unleaded and 105p for diesel, the RAC said it was hopeful forecourt prices would continue to move downwards for several weeks.

It added that the two-week pricing forecast is for a reduction of more than 2p in petrol and nearly 3p in diesel.

The RAC claimed the reduction in pump prices had been led by the supermarkets, which last week made a 2p a litre cut on both petrol and diesel, and this had been swiftly followed by other fuel retailers.

RAC head of external affairs Pete Williams said: “The supermarkets are demonstrating great transparency by passing on wholesale savings to motorists and, in doing so, really helping to make motoring that little bit more affordable. We are confident fuel retailers will continue to pass on reductions in the wholesale price of petrol and diesel to further ease pressure at the pumps.

“Motorists often complain that prices seem to go up far faster than they come down, but this is proof that this is not necessarily the case. We just need the price of oil to remain stable and for the pound to continue performing well against the dollar.”