- 3 updates
The drop in petrol prices is a "dramatic improvement" for squeezed families and the timing "could not be better", according to the head of AA.
However, Edmund King urged the Government to secure the future of British oil refineries, as their closure would have a knock on effect for consumers.
It is not only motorists who will enjoy the biggest drop in petrol prices since the credit crunch began - businesses have received a boost as consumers spend their cash somewhere other than the pump.
- According to the AA, the 5.48p average drop in petrol prices will have diverted £2.83 million a day from the pump to consumer spending.
- Northern Ireland was the most expensive place for petrol in mid-October, with costing 132.9p a litre, even though it had also seen the biggest fall over the last month.
- London, the north of England, and Yorkshire and Humberside are jointly the cheapest areas at 131.9p.
- Despite a 3.3p-a-litre reduction since mid-September, Scotland remains most expensive for diesel at 140.1p a litre while London is cheapest at 138.6p.
Petrol prices have had their biggest fall since the credit crunch in 2008 - but motorists are being warned by the AA that further reductions are unlikely.
The average petrol price feel by 5.49p a litre between mid-September and mid-October - the biggest monthly fall since the 11.5p petrol price collapse in November 2008, the AA said.
The AA said the price falls have cut £2.74 off the cost of refuelling a small petrol car and £3.84 off the bill for a Ford Mondeo-sized petrol vehicle.
A family with two petrol cars will have seen the monthly fuel bill fall by £10.
However, the AA warned prices were unlikely to fall further since the pound lost "some of its value" against the dollar " and the US budget agreement expected to strengthen the economy.