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Brexit likely to increase fuel prices, warns RAC

Date: 27 June 2016   |   Author: Daniel Puddicombe

The RAC has warned that the value of the pound dropping in the aftermath of the EU referendum could impact prices at the pumps.

"It is too early to tell what the implications are in the mid to long-term but it is likely motorists will see some volatility in the price of fuel on UK forecourts in the coming weeks," said RAC fuel spokesman Pete Williams. "While the cost of crude has dropped as markets react to fears of a global economic slowdown, the fall in the value of the pound to levels not seen since 1985 means that retailers are today facing an increase in the wholesale price of around 1.5p, which will very likely be passed on to motorists at the pump."

According to the RAC's Fuel Watch group, the average price of petrol increased by 2p/litre to 110.5p in May, while diesel prices have risen by 2.2p/litre.

The motoring organisation claimed that it will now cost £60.82 to fill up a 55-litre car with petrol, £4.77 more than it did at the end of February, while the cost of refilling a diesel car is £60.89, £5.14 more than three months ago.

"Now summer's here what most families want is a period of stability so that making the most of the better weather doesn't lose some of its shine through higher costs at the pump," said RAC fuel spokesman, Simon Williams. "Much depends on the physical price of oil not rising any further."

However, Howard Cox, founder of the FairFuelUK campaign dismissed that theory: "Any knee jerk reprisal by penalising UK drivers with higher prices at the pumps through higher oil prices, is nothing short of opportunistic, vindictive and unnecessary. We are horror-struck that there is hear-say, no matter if it is just grapevine gossip, that global oil prices may now be manipulated by economic region."

"We hope the new Brexit Government team will ensure 37m UK drivers are not discriminated against," he added. "The Brexit victory shows it is London's Westminster bubble that has been out of touch with the wider majority and it is the greedy currency speculators & parts of fuel supply chain who will probably unscrupulously hike pump prices simply because of this unanticipated result."