Following UK’s decision to leave the European Union, fuel prices are expected to slightly go up because of sterling depreciation.
The imminent effect of Britain’s EU referendum has been a serious depreciation of sterling, which will slightly affect the motorists. The FairFuelUK organization warned the fuel retailers to not exploit the exit vote by increasing the prices more than it is reasonable, also saying that any rise above three pence a litre will be just a speculative move. “We’ve done the maths and crunched the numbers. Any rise above 3p a litre to reflect currency movements is just post-Brexit opportunism,” Quentin Willson, lead campaigner for FairFuelUK, said. ”If it transpires that the oil industry is trying to deliberately profit from the UK’s current political and economic upheaval they should hang their collective heads in shame. This is how recessions begin.”
Howard Cox, founder of the campaign, added that if the oil price stays at about 50 dollars and the exchange rate to 1.33, a three pence rise would ensure retailers margins comparable to their profitable pre-Brexit levels. “When oil’s been at the current £37-£38 per barrel level, over the last 18 months, pump prices have ranged from 106p to 120p. This shows greedy fuel supply businesses fleecing motorists when the opportunity is right for them, picking on diesel drivers the most. We renew our call for an ‘OfPump’ type regulatory body to ensure fairer and fully transparent pump pricing for 37m UK drivers,” he stated.
As the market usually reacts to such movements in up to two weeks, UK motorists will see pump prices going up sometime in the following week.