The Cost of Filling Up, Just Keeps Going Up

The aftermath of Brexit saw the pound plummet to the lowest rate seen against the US dollar in more than three decades. Now, motorists are also feeling the sting, with petrol prices skyrocketing. They’ve been on the rise for four months, but the vote for Britain to leave the EU intensified the trend. This has added more than £5 to the price of filling up the average tank, with analysts predicting that costs will only continue to increase in the wake of the Brexit vote.

Motorists bear 10p petrol price spike

In just four months, pump prices have spiked by 10p, while diesel has jumped by 11p, according to the latest figures from the RAC. Today, the price of unleaded is 112.17p a litre, representing a 1.5p increase. Diesel experienced a similar leap, rising by 1.66p to 112.39p a litre. For drivers, this means higher bills when hitting the bowsers. In March, the cost of filling up the tank of a family hatchback with unleaded petrol sat at £56.05. Yet thanks to oil prices jumping from US$48 to more than US$50 a barrel, motorists are now forking out £61.69. Unsurprisingly, the south east has been hit the hardest, with motorists paying more for both types of fuel. Motorists in Yorkshire and Humber enjoy the cheapest petrol, priced at 111.67p a litre.

More price hikes on the horizon

While drivers may be dreaming of stability, Brian Madderson, chairman of the Petrol Retailers Association warns that the outlook is only set to get tougher. As sterling takes a hammering from the US dollar, experts are predicting a 3p rise, with RAC fuel spokesman Simon Williams commenting, “June was another bad month for motorists with the price of petrol going up again.”

“Filling up is now more expensive which is enough to make an unpleasant dent in household budgets up and down the country, especially for those who have more than one car or need to fill up regularly,” he adds.

However, there is a silver lining. The motoring group maintains that despite the shock, oil prices are expected to remain at around US$50 a barrel, which will supposedly put a cap on petrol prices in the UK.

It’s not just motorists that are being forced to reassess their post-Brexit budgets. Refineries could also suffer, as the pound slumps against the US dollar. ‘Precision + lower operation cost + minimum initial investment = CID 510’ looks at an innovative new process called Constant Volume Combustion Chamber (CVCC), an easier and more precise technology that replaces the inefficient CFR Engine.