Britain could see rise in fuel prices due to EU exit

Monday, June 27, 2016

 

Motorists could be in for a bumpy ride in the near future, as Britain's departure from the EU will cause fuel prices to increase, retailers suggest.

 

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

 

The AA believes the result has left many unanswered questions leading to instability at the pumps as the market adjusts to the news.

 

Edmund King OBE, AA president, says: "Fuel prices will be the biggest immediate concern of drivers with the weaker pound and the Chancellor's prediction that leaving the EU would lead to fuel duty increases."

 

In one of the highest turnouts at a UK-wide poll, 52% of people voted for the country to leave the EU, compared to 48% who wanted to remain a part of it. Over 71% of residents in the UK registered their vote.

 

RAC Fuel Watch spokesman Pete Williams said: "While the cost of crude has dropped as markets react to fears of 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 1.5 pence which will be very likely passed on to motorists at the pump."

 

For drivers taking their card abroad, under current EU legislation, they are able to drive their car in any other EU country under their insurance where they can benefit from the minimum level of insurance cover. This will be abolished in the longer term. Motorists must also display a GB sign, as it is yet to be established if the GB Euro-plates will still be valid.

 

King, goes on to say: "While the fallout of the referendum result will continue to be discussed, there are lots of points drivers will want to see resolved. As the voice of the motorists we will ensure that their views are heard loud and clear throughout the negotiation process."

 

The AA also 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."

 

Should the pound strengthen again, the rise of fuel cost could be neglected, and any decreases in the oil price would also help drivers. 

 

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