Drivers hit with 7p rise in petrol and diesel prices due to pound's decline
Drivers have been hit by higher fuel prices due to the pound's falling value, according to new analysis. The drop in sterling has added 7p per litre to drivers’ fuel bills over the past year, a review by the Competition and Markets Authority has found.
The CMA found that the growing gap between the price of crude oil entering refineries and the wholesale price of petrol and diesel leaving them accounted for a 24p per litre jump in pump prices in the past year.The average price of a litre of petrol at UK forecourts is around £1.62, while diesel is about £1.81 per litre, according to the latest figures. A year ago the prices were £1.37 for petrol and £1.41 for diesel.
Steve Gooding, director of motoring research charity the RAC Foundation, said the CMA believes the 5p cut in duty was passed on to drivers, but any benefit was "swallowed up" by the pound's fall. Mr Gooding said drivers of diesel vehicles in particular will continue to face high prices for fuel. “While fuel prices have mostly fallen back in recent weeks, rising crude oil prices, an increased refining margin, cutbacks in oil production by Opec and yet more turbulence on the currency markets suggest storm clouds on the financial horizon, most acutely for diesel drivers already facing a 20p per litre price premium over petrol," he said.
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