Following our blog last week on petrol prices predicted to reach a 2016 high, the ‘flash crash’ in the pound combined with rising Brent crude oil prices has now seen the Petrol Retailer’s Association (PRA) warn of a price rise of 5p – within the next few weeks.
Brian Madderson, chairman of the Petrol Retailers Association (PRA), warned: “Motorists can expect increases of up to 4 or 5ppl by the end of the month unless there are favourable corrections to the exchange rate and global oil prices. The double impact of the pound weakening against the US dollar and global oil prices strengthening will cause pump prices to move sharply upwards.”
With rumours of the UK making a ‘hard Brexit’, the British pound is currently sitting at its lowest level against the US dollar since 1985.
Oil prices are rising in line with cutting production, with Opec (Organisation of Petroleum Exporting Countries) voting for the first time last year to cut prouction by up to 700,000 barrels a day. Russia, one of the biggest exporters, have confirmed they too are ready to produce less, with Vladimir Putin speaking at the World Energy Congress saying: “Russia is ready to join the joint measures to cap production and is calling for other oil exporters to join”. He added that if the trends continued, a global shortage in oil would give rise to “unpredictable jumps” in prices and said a cut in production is “likely to be the only right decision to maintain stability of the global energy sector”.
So what can be done to protect the consumer in the UK? The PRA is now exerting pressure on the Chancellor Philip Hammond to reduce excise duty in his Autumn Statement, which will be taken to Parliament on 23rd November. They believe that a reduction from 57.95ppl to 55ppl would help ensure consumer spending does not drop.
Or, of course, you can earn back some of your petrol pounds whilst you drive around, by sharing your spare seats on both your regular and one-off trips. Offer your spare seats on Liftshare now and find your match to start sharing and saving!
Author Lex Barber