Fuel duty would be cut by a fifth under a radical scheme to change the way roads are paid for.
Drivers currently suffering from fuel prices at a three-and-a-half-year high would save 14p per litre under the Road Miles concept.
The proposal, developed by AA president Edmund King alongside his economist wife, Deirdre, would see drivers charged for every mile they drive over 3,000 miles per year.
Motorists would pay less than 1p per mile in the first year and there would be concessions for those living in the most rural areas and the disabled, according to Mr King.
The amount of revenue generated would lead to fuel duty being reduced from 70p per litre (including VAT) to 56p over five years.
Average UK forecourt prices currently stand at £1.26 per litre for unleaded and £1.30 for diesel. This is the most expensive both fuels have been since October 2014.
Mr King said: “Cutting fuel duty by 20% may be seen as a radical step but we have some of the most highly taxed petrol and diesel in Europe. Our proposal gives drivers a clearer choice as to where and when they drive and what it will cost them.
“To put it into context a 20% cut in duty along with its VAT, even with oil at 80 US dollars a barrel, would bring us back to pre-2008 prices. In essence it cuts 14p per litre.”
An AA survey of 9,000 drivers found that more than three out of five (63%) would support such a scheme, which was runner-up in last year’s Wolfson Economics Prize.
“Our proposal would save drivers money and could be popular,” Mr King added.
In a letter to the AA president, European Commissioner for Transport, Violeta Bulc, wrote: “Fair and efficient road charging has a role to play not only in securing sustainable financing to safe roads, but also in incentivising responsible behaviour and more efficient transport operations.”
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