THE price of petrol at the pumps is continuing to fall and should dip even further soon, the AA said today.

Although diesel is also cheaper, it is still stubbornly high compared with the rest of Europe, the AA added.

Average petrol prices in the UK are now 132.65p a litre - almost 10p lower than the record 142.48p in mid-April.

The average price of diesel is 138.10p a litre compared with the peak figure of 147.93p.

The AA said a two-car family is spending £20.87 less on petrol a month than in mid-April while the cost of filling an 80-litre commercial van tank had fallen £7.86 in the past two months.

It added that falls in north-west Europe wholesale petrol prices should bring pump prices down even further.

AA public affairs head Paul Watters said: "The fall in the fuel price, particularly petrol, has continued into June at a higher rate - in part due to pressure from the AA which demanded fuel forecourts fully reflect the significant falls in wholesale fuel prices.

"This was matched by the Transport Secretary (Justine Greening) urging greater price transparency."

He went on: "However, diesel prices in the UK remained stubbornly high this spring compared to other EU countries who reflected wholesale price parity between petrol and diesel fuel. It is this fuel that drives the cost of services and transporting goods - having a significant impact on inflation.

"The Chancellor's planned duty rise in August, which will increase pump price by around 3p, will increase the inflation rate and put more pressure on hard-pressed families and business in the UK once again."