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Oil price dip fails to prevent post-Brexit vote rises at pumps

Published 13/07/2016

Petrol pump prices have risen since the EU referendum
Petrol pump prices have risen since the EU referendum

Motorists are paying more for fuel at the pumps following the EU referendum result despite the price of oil falling, new figures show.

Since June 24 the wholesale price of unleaded has dropped by nearly 3p per litre (ppl) but the average price on forecourts has risen by more than 0.5p.

Diesel forecourt prices have gone up even more since the vote for Brexit - a 0.7ppl increase despite the wholesale price falling by 0.3p.

RAC fuel spokesman Pete Williams said t he impact of the fall in the value of sterling on wholesale prices has largely been cancelled out by the declining oil price.

Brent crude sunk below 45 US dollars a barrel on Friday for the first time since early May.

Mr Williams said: " Despite some fears that petrol prices could shoot up as a result of the EU referendum, we believe there is now a strong case for a cut in the price of unleaded on UK forecourts.

"The fact remains that the headline oil price has a huge bearing on what we pay for fuel at the pumps, and it is this price that has been falling as a result of relatively weak global demand and new fears of oil oversupply.

"At a time when both consumer spending and the strength of the UK's economy are under intense scrutiny in the wake of the EU referendum result, transparency in fuel pricing is crucial and we are therefore calling on retailers to do the right thing and pass on wholesale savings to drivers."

The RAC said a 2ppl cut in unleaded would take the average price down to around £1.10 per litre, or less than £1.08 per litre at the cheapest forecourts.

Fuel prices have been increasing since the winter when the average price reached a low of £1.01 per litre.

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