The RAC has launched a new app to help drivers scout out the cheapest fuel in their area, as it warns that average forecourt prices are still too high.

Petrol prices went up in June while diesel prices are still not down to the level they should be, according to the RAC

Its latest Fuel Watch data reveals that the price of petrol rose in June for the first time in eight months – that’s despite wholesale costs meriting further reductions at the pumps.

Unleaded went up by nearly a penny (0.7p) to 143.9p, while diesel came down by 1.2p to 145.46p at the end of month, the latter marking eight consecutive monthly reductions.

But the RAC says they’re both still overpriced; unleaded is currently 5p too expensive while diesel is 6p too dear as retailers refuse to pass on wholesale savings.

And following this week’s landmark Competition and Markets Authority (CMA) announcement that supermarkets have upped their margins on fuel, the RAC data shows retailers are now making a margin of around 12p a litre on petrol and 13p on diesel compared to the long-term margin of 7p, further underlining the CMA’s findings.

But its new app could help circumvent this. Said to be the most up-to-date, freely available fuel finding app in the UK, the myRAC Fuel Finder enables drivers to find the cheapest petrol and diesel wherever they are. According to the RAC, drivers using the app could save 6p a litre – or £3.30 a tank – on diesel while petrol can be found at 5p less.

RAC fuel spokesman Simon Williams said: “We firmly believe that having access to a free app such as myRAC, which is always up to date, can be the difference between feeling ripped off at the pumps and satisfied you’ve got the best deal possible near you.

“The more people who seek out the lowest prices using it, the more likely we are to see other retailers nearby lower their prices to compete. And, as we know, proper competition is often lacking in UK fuel retailing everywhere but in Northern Ireland where prices are considerably cheaper than on the other side of the Irish Sea.”

The CMA has already recommended the Government make major changes to the UK road fuel market, including introducing a fuel finder scheme. The Government has since said it’s preparing to force retailers to “publicly fess up to how much they are charging at the pump” by changing the law.

The RAC has also warned drivers not to assume supermarkets are the cheapest place to buy fuel as forecourt prices can vary significantly across different retailers and areas. Its app enables drivers to make up to five searches a day over a two-, five- or 10-mile radius from their chosen locations, as well as keeping an eye on the UK averages, plus supermarket and motorway services fuel prices.

Drivers can download the myRAC app here.