To put this in some context, £5.3Bn is the saving UK taxpayers would enjoy from a 1.3p drop in the basic rate of income tax rate (currently charged at 20p in the pound).

If petrol prices were to fall to £1 and remain at that level, this aggregate saving would increase to £7.2Bn saved each year compared to 2014. That would be equivalent to the taxpayer benefit from a 1.7p drop in basic rate income tax.

How it affects the average motorist:

• The average motorist stands to save £146 a year compared to 2014, this rises to £201 a year if petrol prices fall to £1 a litre and stay at that level.
• The average male motorist stands to save £175 a year compared to £114 for female motorists. This is because the average male motorist drives 6,866 miles a year, compared to 4,476 miles for female motorists.
• The highest income households stand to save four-times more than lowest income households, because they drive significantly more car miles. The top fifth of households by income level stand to save £329 a year, whereas the bottom fifth stand to save £77 a year. The average household stands to save an estimated £180 a year. Should the price of petrol fall to £1 per litre and stay there, this figure would rise to a £452 saving for the top fifth of households and £106 for the bottom fifth.

How the regions fare:

• The typical Londoner only drives 1,430 miles a year and so London residents stand to save £36 a year on average.
• Meanwhile the average resident of the East Midlands drives 4,155 miles a year and stands to save £106 a year.
• Residents of the East of England and Wales also travel a lot by car, making an average saving of £103 each.
• The South East is the region which benefits most overall from petrol price savings, with an estimated saving of £835M.
• The North East benefits least, with an estimated overall saving of £200M.