EU referendum: Drivers ‘could face rising petrol prices’

June 24, 2016 1:06 pm Published by

EU referendum: Drivers ‘could face rising petrol prices’

  • 24 June 2016
  • From the section Business

Petrol pumpImage copyright

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

Brian Madderson, chairman of the Petrol Retailers Association, said that a rise of 2p-3p a litre was on the cards.

He 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 next week, he said.

That was because the increase would apply to some deliveries made from this weekend.

Motoring organisation the AA took a similar view. It said: “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.

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This post was written by FSB News