Data released by the Post Office travel section shows that the cost of using hired cars this summer is lower, mainly due to falling fuel prices. Large drops in the expense of own transport can be expected for Britons traveling abroad.

“The Pound Sterling is recovering just in time for the summer holiday season and combined with the price reductions for fuel and car rental, drivers in the United Kingdom can travel more miles for the same amount of money,” said Post Office head of travel Sarah Munro.

“This year’s report shows more evidence of price cutting activity to boost tourism in popular European summer holiday resorts.”

The biggest drops would be felt in Greece and Portugal, where fuel prices are expected to drop the most. Austria and Spain offer the best value for holiday makers hiring cars while Switzerland has the cheapest petrol on the continent, costing the equivalent of 91 pence a litre.

The Netherlands by contrast has the dearest petrol prices, at times 30 per cent more expensive than Spain.  And while fuel costs and car hire have been getting cheaper by about 10 per cent in Britain and on the continent they seem to have gone the other way across the Atlantic, where the price of gas has increased.

The fluctuating exchange rate has played a hand in this anomaly, with the recent weak pound making trips to Florida and other US states unusually expensive. Car hire is considered a must when visiting the US, due to the lack of suitable public transport for tourists. The strengthening pound has reversed this expense trend.