- Drivers are paying an extra £5 for each tank of gas.
- There is a dramatic decline in the value of the pound.
- The analysis was conducted before the mini-budget.
According to a recent analysis, drivers have been paying an extra £5 for each tank of gas as a result of the dramatic decline in the value of the pound.
The analysis, however, was conducted before yesterday’s mini-budget, which was followed by a further significant decline in the value of sterling that brought it to a new 37-year low.
The AA claimed that the weakening pound is “severely undermining” savings at the pump as the price of oil returned to where it was prior to the Russian invasion of Ukraine.
It calculated that if the pound had stayed at its mid-February value of $1.35 rather than this week’s $1.14 level, which was a 37-year low, gasoline would have been “at least” 9p cheaper per liter. The pound had dropped to less than $1.10 yesterday afternoon.
According to the motoring organization, the prior disparity in pump pricing raised the price of filling up a typical 55-liter family car by £4.95 at the time.
At the beginning of the week, the average price of gasoline was 164.8p per liter, down from 173.5p in mid-August.
Less pronounced than the 15p decline between mid-July and mid-August is the 8.7p decline.
However, the Brazilian President’s strange response came during his visit to the UK for the Queen’s funeral, despite the relatively cheaper price.
Jair Bolsonaro recorded a video of the forecourt pricing in London and disparagingly compared it to the price in Brazil.
Between mid-July and mid-August, the average price of diesel fell by 12.5p, and at the beginning of the week, it fell by a further 3p to 181.3p.
When drivers compare changes in oil prices to those at the pump, the impact of the exchange rate is sometimes missed, according to AA fuel price spokesman Luke Bosdet.
“Right now, it’s crucial. The weakening pound is particularly bad news for drivers because oil and fuel are traded on commodity markets in dollars.
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