Potential price increases at the pumps?

Drivers could face higher diesel and petrol prices as a result of the vote to leave the EU, retailers have suggested.

fuels
Fuel pump

Brian Madderson, chairman of the Petrol Retailers Association, has stated that a rise of 2p-3p a litre was on the cards. He also said the plunge in the value of the pound against the dollar would have an immediate impact, as wholesale fuel prices are quoted in dollars.

The rises were likely to be implemented on forecourts over the next few weeks.

Hopes that soaring petrol prices had found a ceiling after two and a half months of increases have been dashed by the prospect of $50 oil, May’s AA Fuel Price Report warns.

The AA state: “Assuming that current market conditions persist over the next 10 to 14 days, the price of petrol at some fuel stations might be expected to rise by 2.25p a litre, or £1.25 a tank.”

Some suppliers may have hedged their exposure to currency fluctuations, which would delay any increases.

If the pound strengthens again, the impact on the cost of fuel would be diminished, and any weakening in the oil price would also help drivers.

Further info.

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