Speaking in his Autumn Statement, Chancellor Philip Hammond cancelled next year's planned rise in fuel duty.
It's the seventh successive year that the tax has been frozen.
In the South West, where many people rely on their car to get around and run their business along a network of long roads, this should be good news.
Mr Hammond said: "This will save the average car driver £130 a year and the average van driver £350 a year.
The cost of unleaded petrol and diesel crept up again in September, as a result of rising world oil prices putting upward pressure on the wholesale cost of both fuels.
It now costs on average £5 more to fill up the car than it did this time last year.
Drivers can help themselves by making sure they get the cheapest fuel possible - and we don't mean by driving around checking petrol stations in your area. Try logging on to a free comparison website.
In the Bristol area, we found today's prices for unleaded petrol ranged from 108.9p a litre to 124.9p a litre
- Log on to a site like Petrolprices.com to find the cheapest fuel in your area
Unleaded petrol has gone below a pound a litre at a service station in Swindon.
The Newport Street Service Station is selling petrol at 99.7 pence per litre - one of the first in the country to do so.
Petrol prices are currently at their lowest in five years.
The AA has warned that petrol prices could rise by 5p a litre. The motoring organisation blames the increase at the pumps on speculators 'betting on rising oil prices'.
They buy huge quantities of petroleum on the open market, store it until the price rises and then sell it on for a big profit.
Petrol pump prices could soar by 5p a litre, burning a hole in the pockets of holiday motorists, the AA has warned.
A surge in the wholesale cost of petrol across Europe has already led to a rise in UK petrol and diesel prices, with more misery possibly to come, the AA said.
On average, UK petrol prices have risen from 134.61p a litre in mid-June to 135.78p now, while diesel has gone up from 139.16p a month ago to 140.24p now.
The AA said: "A $100-a-tonne increase in the cost of petrol across north west Europe, combined with a weaker pound, heralds a potential 5p increase in pump petrol costs."
It added that should petrol go up 5p a litre then a family from Hounslow in west London, for example, heading off on holiday in a typical family car to Cornwall will pay £2.90 more for the return trip than it would have done in June.