Petrol prices hit a record 185p a liter on Sunday as ministers asked for an urgent review of whether the fuel tax cut is being passed on to drivers.
As wholesale petrol prices fall, the AA said price hikes at petrol stations “should come to an end, at least temporarily, by the end of the week”.
Soaring fuel prices have been driven by the war in Ukraine and measures to reduce Europe’s dependence on Russian oil.
Automobile associations have urged the government to do more to help drivers.
The RAC said another fuel tax cut was “very welcome, albeit overdue”.
“The speed and scale of the increase is staggering, with unleaded up 7p and diesel up almost 6p in a week,” said the group’s fuel spokesman, Simon Williams.
“This must certainly put more pressure on the government to take action to ensure drivers don’t endure a summer of discontent at the pumps.”
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Meanwhile, diesel prices fell slightly to 190.92 pence a liter on Sunday after hitting a new record of 191.03 pence a liter on Saturday.
This means the average cost of filling up a 55 liter family car with diesel is now £105.01, while the price of a petrol car is £101.77.
Retailers base their prices on the wholesale cost of gasoline and diesel, but there is typically a two-week lag in pump prices to reflect changes in wholesale prices due to the time it takes for fuel to reach forecourts.
Unlike gasoline, the wholesale price of diesel continues to rise.
AA fuel prices spokesman Luke Bosdet said: “The relentless rise in the cost of diesel remains a nightmare, with its impact on the cost of delivery of goods and services and therefore on inflation.”
Business Minister Kwasi Kwarteng has asked the Competition and Markets Authority (CMA) to look into whether the 5p fuel tax cut will be passed on to drivers quickly enough and whether there are local price differences.
The Petrol Retailers Association, which represents independent fuel retailers, has said it welcomes “transparency on fuel prices” and will cooperate with the CMA’s investigation.
The association says its members passed on the fuel tax cut after it was announced in March, but wholesale fuel prices have continued to rise since, leaving retailers “operating on extremely tight margins”.
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