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Petrol prices at three-year low

The price of fuel at the pumps has fallen to a three-year low, according to AA figures.

As of yesterday, the UK average petrol price was 129.18p a litre - the lowest since February 23 2011 - while the average diesel price was 133.55p a litre, the lowest since February 6 2011.

AA public affairs head Paul Watters said: "Asda triggered something of a supermarket price war on Tuesday, which was enough to send average UK pump prices to their lowest for more than three years.

"A year ago, petrol (137.33p) and diesel (141.62p) were more than 8p a litre more expensive. For a typical 55-litre fuel tank, drivers are £4.40 better off."

But he added that the UK was still lagging behind most of Europe when it came to falls in prices.

Mr Watters said: "D rivers on the Continent have been enjoying these lower prices sooner. Despite the UK fuel industry's claim to sell the cheapest petrol in Europe before tax, new EU figures show that fierce competition from fuel-price regulation drove Austrian pre-tax prices even lower."

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