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Petrol to cost people £5 more, say AA

Petrol to cost people £5 more, say AA

Drivers are paying more at the pump as the pound falls

Drivers are forking out an extra £5 to fill up their cars at the pump, it has been claimed.

With the pound plummeting over recent weeks and months - falling even further following the government's 'mini' budget on yesterday (23 September) - motorists are getting less for their money.

And despite pump price savings on the cost of oil falling back to where they were before Russia's invasion of Ukraine, a dip in the UK economy means the benefits aren't being felt by drivers.

As a result, the AA says that customers are paying £5 more for a full tank of petrol.

AA fuel price spokesman Luke Bosdet said motorists were being hit hard by the fall of the pound.

He said: "The influence of the exchange rate is often overlooked when drivers compare oil price movements with those at the pump.

Drivers are paying £5 more to fill up their cars, it has been claimed.

"At the moment, it is critical. Oil and fuel on commodity markets are traded in dollars, which makes the weaker pound very bad news for motorists.

"The price of oil is back to the level at the start of the Ukraine war but petrol is 15p a litre more expensive.

"Two-thirds of that higher cost is down to the weakness of the pound."

Sterling has been weak against the dollar for months, largely because of the strength of the US currency.

However, Mr Bosdet added that it is possible to buy petrol at around 10p per litre below average prices by finding a 'competitive forecourt' selling the fuel at less than 155p per litre.

This warning comes after it was revealed yesterday that the pound fell to yet another 37-year low following the Chancellor's 'mini' budget, which unveiled billions of pounds of tax cuts and spending.

The price at the pump has been affected by the fall of the pound.
Andrew Michael/Alamy

Sterling declined by more than three percent to 1.0862 dollars in the aftermath of Kwasi Kwarteng’s announcement in Parliament last week.

It represents the lowest figure since 1985 and follows a long period of weakness in the currency after concerns over surging interest rates.

The news was compounded by the Bank of England's announcement that it had added another 0.5 percent to interest rates, bringing the current level to 2.25 percent, which warned that the UK could already be in a recession.

Kwarteng's budget was roundly criticised by Labour’s Shadow Chancellor Rachel Reeves.

She accused Kwarteng of a ‘comprehensive demolition’ of the last 12 years of Tory government.

She said: "The costs of the energy price cap will be funded by borrowing, leaving eye watering windfall profits of the energy giant untaxed."

Featured Image Credit: Kevin Britland/Jack Sullivan/Alamy

Topics: Politics, UK News