With Brent crude oil currently at a yearly high and the pound continuing to fall the Petrol Retailers Association have warned that UK motorists will soon be paying more at the pumps.
Motorists in the UK have been warned that fuel prices could by as much as 5p per litre by the end of October as a ‘double whammy’ of rising oil prices and a slumping pound combine to hit consumers in the pocket.
The price of Brent crude oil is currently at a 52-week high of almost $53 a barrel, which has already pushed the cost of fuel up in the UK. Now experts are predicting things will only get worse as the pound continues to fall.
The chairman of the Petrol Retailers Association (PRA), Brian Madderson, had a stark warning: “Motorists can expect increases of up to 4 or 5ppl by the end of the month unless there are favourable corrections to the exchange rate and global oil prices.
“The double impact of the pound weakening against the US dollar and global oil prices strengthening will cause pump prices to move sharply upwards.”
The PRA are calling on the UK government and the Chancellor Philip Hammond to announce a reduction in excise duty in his upcoming Autumn Statement to make sure consumer spending doesn’t drop in the crucial run-up to Christmas.
Madderson said: “This would be an extremely popular and valuable contribution to ensuring consumer spending does not start to fall away and damage business prospects as the new Government grapples with the aftermath of Brexit.”
The falling pound is currently at its lowest level compared with the dollar since 1985, following the government’s talk of a ‘hard Brexit’.
RAC fuel spokesman Simon Williams said: “The unexpectedly sharp fall in the value of the pound will make the wholesale price of fuel go up. Sadly, it’s also happened at a time when the oil price appears to be rising again so the combined effect will be bad news for motorists.
“This is a double whammy for motorists. We’re likely to see the price of both petrol and diesel increase by around 3p a litre in the next fortnight.”
He added: “With the pound now worth so much less, there can be no other outcome than an unwelcome increase at the pumps from the current national averages of 113p for petrol and 114p for diesel.”
Meanwhile, Russia has signalled it will support the proposal led by the Organisation of the Petroleum Exporting Countries (Opec) to freeze the production of oil to try to further increase oil prices around the world.
Opec members voted last month to decrease production for the first time in eight years – aiming to cut about 700,000 barrels per day and bring its output to 32.5-33 million barrels per day.