According to RAC Fuel Watch, the average price of diesel fell by 12p a litre in May, making for the largest cut ever since it started tracking fuel prices in 2000.
Prices fell from 158.91p per litre to 146.99p last month, with drivers finally seeing prices drop after wholesale costs of diesel were below petrol.
With the new price drops, the cost to fill an average 55-litre family car is now £6.50 cheaper.
Petrol, on the other hand, saw prices reduced from 146.35p to 143.26p – a saving of £1.70 per tank.
May also saw the seventh consecutive month of pump prices falling, with both petrol and diesel drivers saving more than £26 per tank compared to record prices last summer.
READ MORE: ‘Best times’ to visit a fuel station to save on petrol and diesel prices
Despite the massive price drops, the RAC argues that the reduction is long overdue and motorists should be seeing an even larger price drop.
For 10 weeks, the wholesale cost of diesel has been lower than petrol, although prices have not reflected that.
Simon Williams, RAC fuel spokesperson, said: “After calling for big pump price cuts for weeks we were pleased to see that May was the month where this finally happened.
“The fact it appears to have been prompted by the Competition and Markets Authority’s (CMA) mid-month announcement about weakening competition in fuel retailing is surely not a coincidence.
“A 12p reduction in the price of diesel in one month is something we haven’t seen in nearly 23 years of monitoring prices.
“But despite this, it’s still galling to see that a litre of diesel is 8.5p cheaper in Northern Ireland than it is in the rest of the UK.”
Drivers in Northern Ireland benefit from the Consumer Council’s Fuel Price Checker, which aims to promote competitiveness across filling stations.
It shows motorists in most towns and cities in Northern Ireland the average prices, as well as the cheapest and most expensive for petrol and diesel costs.
Based on data from the start of the month, Cookstown has the lowest average price for diesel at just 132.8p per litre, while Omagh is selling petrol for an average cost of 136.4p.
By showing the cheapest prices for areas around the country, people may choose to alter their habits and travel slightly further to save money.
The average price of diesel across Northern Ireland is just 138.49p per litre – a massive 8.5p lower than the average across the rest of the UK.
The RAC believes that prices have been falling in recent weeks because of the CMA’s intention to interview supermarket bosses about high fuel prices.
Mr Williams added: “We’re sure retailers in Northern Ireland are still making money – they’ve just done the right thing for their customers by moving prices down as wholesale costs have fallen.
“The fact supermarkets have less of a stranglehold on fuel retailing there may have something to do with it.”
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