Drivers can expect an even higher petrol price per gallon, as the year progresses
At a time when everyone is keeping a tight hold on their purse strings, the UK driver is no exception.
Fluctuating prices at the pumps could be leaving you questioning if you’re getting a good deal on your motoring fuel costs or not, and the rise of petrol prices in July is likely to be followed by more of the same throughout the year.
Wholesale oil price increase in July causes a surge to the petrol price (UK)
Since January, there has been a steady rise in the cost of petrol in our UK at supermarkets and service stations alike.
According to the RAC, the average price of a full tank of fuel should now cost consumers £72.57. In January it would have cost £70.81.
The rise in the price at the pumps can be split into 2 areas.
The first of which was the surge in the wholesale price of oil at the end of July. However, this wasn’t the only factor.
The value of the pound dropping by 3% is an extra kick in the wallet
As the contest for the Country’s leadership came to its expected finale, with Boris taking the helm, the strength of sterling took a dip. Again.
Sadly, whether this is a simple coincidence or just another blow for the residents of the UK, it’s having a real effect.
The UK economy is flailing; on top of the circus of Brexit, the pound is now at its lowest against the dollar since March 2017.
With the price of oil rising, and the value of the pound falling, the cost of fuel prices today are only going to suffer—and that’s bad news for British drivers.
What happened to the ‘petrol prices falling’ good news we were teased with in June?
Yes, for a second there we had reason to think things were looking up. June petrol prices fell by 3p per litre to 127.62p—a significant drop after seeing the forecourt fuel prices reach their yearly high (so far) in May.
Thanks to June’s dip, the fuel price today is still lower than it was at the beginning of June—but it probably won’t stay there for long.
Experts estimate that with the rise in oil prices and the fall of the pound, petrol prices in August could reach a price to top May’s high of 130.67p per litre price.
And the news is set to get worse still, with the strong possibility of a No Deal Brexit.
A No Deal Brexit will likely hit petrol hard in the short term
The governor of the Bank of England has chipped in with his thoughts on the prices of petrol in the UK—and what he thinks it will mean if a No Deal Brexit happens.
He suggested that a lot of the trade prices would rise, as the pound would plunge further still than it already has. Top of the list of consumables to suffer immediate prices rises were fresh groceries and petrol.
As much as the nation is sick of hearing about Brexit (it really has dragged its heels for way longer than anyone anticipated or believed it could have), if you’re concerned about the price you’re going to pay for petrol over the next year or two, and it’s expected rise, this is the key place to look out for more bad news.