Hauliers and motorists have welcomed the biggest monthly drop in petrol prices in four years, but say that fuel costs are still too high.

Petrolprices have fallen by more than 4p a litre for the second month running according to the AA fuel price report.

The report shows that since the middle of last month, average UK petrol prices have fallen 4.63p a litre, from 138.40p to 133.77p – the biggest fall since December 2008.

June’s price drop comes on top of a 4.08p a litre fall the previous month, according to the motoring agency.

However, businesses have warned that most of the reduction would be wiped out if the Government persisted with a proposed fuel duty rise of 3p due to take effect from August 1.

Chancellor George Osborne has come under increasing pressure to drop plans announced in March’s Bud- get for a 3p per litre increase in fuel duty.

The Government has already made significant U-turns on several Budget proposals, including taxes on hot baked goods, static caravans and tax relief for charitable donations.

The past month has also seen the average pump price of diesel fall by 4.99p a litre, from 144.30p in mid May to 139.31 now, but UK diesel still costs at least 4p a litre more than in Europe, according to the AA.

Even this reduction will be scant comfort for motorists in the region who now have the most expensive diesel on average in the UK at 140.0p after pip- ping Northern Ireland to the unwanted title.

Simon Duggan, operations manager at Crawley-based Eezehaul, said his firm was still paying more for fuel now than in 2008, despite the recent drops.

He said: “We try to absorb as much of the cost as we can but it becomes unsustainable and that’s unfortunately why we have to pass on the costs to customers.

“High petrol prices affect everything customers buy because nearly every- thing has to be moved by road.

“If the Government want the economy to grow, they should not go ahead with the duty rise in August.”

Steve Percy, of the People’s Parking Protest, said: “That sort of drop in price you do notice at the pumps and I would like to see more of the same. “We have paid too much for petrol for many years. “My only fear is that the Government will use the price drop to justify putting more duty on petrol.”