Fuel prices in the UK have started to dip - finally - but it's not good news for everyone.

The latest average fuel prices, indicated by RAC Fuel Watch, show prices at the pump for petrol and diesel finally dipping after weeks of stagnation. 

The average price of petrol stands at 146.63p while diesel is 164.26p - so we've collected the cheapest fuel prices - according to confused.com - across the area for you to compare.

The cheapest price in Somerset at the moment is in Bridgwater where motorists filling up at the Asda petrol station on East Quat pay just 138.7p for a litre of unleaded petrol. Meanwhile, you can expect to spend 150.9 per litre at the petrol station in Morrisons, Glastonbury, and 149.9 at Sainsbury's in Street. Popping just up the road to Wells and you'd pay 147.9p for that same litre of unleaded. In Shepton Mallet, you'll pay 145.9p per litre at the Gulf garage on Fosseway at Pylle, compared to 146.9p at Tesco in the town.

The most expensive petrol station in the area is the Shell station (formerly the Esso garage) at Wirrall Park in Glastonbury, which is charging 152.9p per litre.

The cheapest diesel can is at Lysander Road in Yeovil, charging 147.9p per litre. In Street you can expect to pay 164.9p and 165.9p at Morrisons in both Wells and Glastonbury, but just 159.9p at the Gulf garage in Pylle, and 161.9p at Tesco in the town. Once again, the most expensive place is the Shell garage in Glastonbury, where you'll be charged 168.0p.

Are drivers finally getting a better deal on fuel?

Sort of. It's not the best news for anyone who drives a diesel car or van, though.

The wholesale price of diesel is now on a par with petrol yet diesel is still being sold for 17.5p a litre more on average at forecourts across the UK, data from RAC Fuel Watch reveals.

Since the start of March the average weekly wholesale price of diesel has fallen 5p a litre while unleaded has remained the same (diesel – 119p to 114.5p; petrol 114.6p to 114.7p).

What do the RAC have to say about that?

They're not overly impressed.

RAC fuel spokesman Simon Williams said: "The forecourt price disparity between petrol and diesel across the UK is absolutely shocking given their wholesale prices are now virtually identical.  

"At the beginning of March wholesale diesel was only 6p more expensive than petrol yet there was a 20p a litre gap between both fuels on the forecourt. Now the two fuels are identical on the wholesale market, and there's still more than 17p difference at the pump.

"For retailers to be taking a margin of nearly 20p a litre on average throughout March, compared to the long-term average of 7p, is devastating for every driver and business that relies on diesel.

"The price of a litre of diesel should have already come down to around 152p, and now the wholesale price is the same as petrol at 114p we really should soon be seeing forecourts displaying prices of 147p. Sadly, this seems unlikely given current retailer behaviour. Instead, the big four supermarkets, which dominate UK fuel retailing, are charging an outrageous of 162p a litre on average.

"As the supermarkets buy so frequently they have had plenty of time to pass on the lower prices they are benefitting from on the wholesale market to drivers at the pumps, but they remain totally resolute in their refusal to cut their prices substantially which is nothing short of scandalous, particularly in a cost-of-living crisis. The sole national retailer prepared to buck this trend appears to be membership-only chain Costco, which is charging just under 150p a litre for diesel at the moment.

"Since the beginning of March, they have only reduced diesel by just over 3p a litre. Considering supermarket prices are usually around 4p cheaper than the UK average, their customers should have been seeing prices under 150p weeks ago.

"We are also seeing many independent retailers charging far less than their supermarket rivals which is a sign of how much fuel retailing has changed. This would have been pretty unusual several years ago but is now rapidly becoming the norm. If smaller retailers can afford to make ends meet with lower margins and smaller sales volumes, then what excuse can the supermarkets possibly have for keeping their diesel prices so high?

"We hope the Competition and Markets Authority, which is currently reviewing the road fuel market in the UK, is keeping a watchful eye on this pricing behaviour as we believe it's against the interests of diesel drivers up and down the country."

What makes up the cost of a litre of fuel?

The price you pay for petrol and diesel at the pumps is governed by wholesale fuel prices, which in turn, are affected by:

• the global price of crude oil
• supply and demand for crude oil
• oil refinery production and capacity
• the pound to dollar exchange rate, as refined fuel is sold in US dollars per metric tonne
• distribution costs
• the margin fuel retailers decide to take
• fuel duty charged by the Government, currently 52.95p a litre
• VAT charged at the end of every forecourt fuel transaction, currently at 20%

While some of these stay largely static - such as the fuel duty rate and VAT - others such as the oil price and dollar to sterling exchange rate can be very volatile. This explains why prices rise and fall. A combination of high oil prices and weak Sterling leads to the highest pump prices.

How to save on fuel all year round

Fill up at busy petrol stations - These stations buy more fuel and can take advantage of falling prices.

Choose a big station - Stations buy their fuel on the wholesale market. Just as in any other negotiation, the big buyers are better able to strike a deal.

Look for a cluster of stations - When several stations are close together, they are more likely to cut prices to tempt drivers in.

Do your research - The website PetrolPrices.com allows you to compare prices in your area. It also lists the latest average prices and is regularly updated.

Play the supermarket game - Supermarkets are competing on fuel prices along with everything else. When you're shopping, keep an eye out for vouchers offering petrol discounts.

Stop by provincial towns - Airports, motorways, expensive cities and rural areas have the highest charges, according to PetrolPrices.com analysis.