A forecourt which was the first to hit £2 a litre in Blackburn is now selling some of the cheapest fuel in town.

The BP garage at the corner of Montague Street and Preston New Road was the first in Blackburn and the surrounding areas to be advertising record high petrol prices of almost two quid a litre.

In February, the forecourt was selling fuel 10p a litre more than a rival station less than half a mile away on Preston New Road.

Throughout the spring and the early summer, prices at the petrol station were some of the highest seen; in June the price of unleaded was 194.9p per litre and diesel was 199.9p - essentially £2.

This week the forecourt, which is run by the Park Garage Group was displaying a price of 167.9p per litre of petrol and diesel at 186.9p.

The Shell station on Whalley Banks also had the same price. Despite the drop in prices in recent weeks the price is still more than 20p per litre than where it was at the beginning of the year.

The big supermarkets, which normally display the lowest prices, are being shunned by some drivers who say their prices are still too high, despite being lower than most standard filling stations.

Earlier this month, the AA said wholesale costs have fallen 30p from their June peak, should be passed on to consumers as quickly as possible to save families hundreds of pounds.

Diesel also appears to be falling, from 190.01p a litre last week to 185.9p.

AA spokesman Luke Bosdet said: “Lower pump prices are taking the strain off family budgets at present and that benefit should eventually double to at least 30p a litre off the peak price of petrol in July.

“However, increases in domestic energy prices are likely to overwhelm those savings heading into the winter.

“That is why the UK needs the fuel trade to pass on the savings as quickly as possible.

“The 20p-a-litre fall in diesel wholesale costs should also be contributing to lower transport costs that will hopefully roll back some of the inflation on goods and services.”