English>

Market News

Pound’s Slide Makes UK’s Petrol Crunch Even More Acute - BLOOMBERG

JUNE 10, 2022

BY  Julian LeeBloomberg News

.

(Bloomberg) -- A part of the UK’s soaring petrol and diesel prices is down to the nation’s slumping currency. 

Record pump prices are closing in on £2 a liter (more than $8.50 per US gallon) and have even jumped above that at motorway service stations, according to the RAC motoring organization. 

But with the dollar being the international oil market’s currency of choice, some of the surge has come from a depreciation in the pound.

UK petrol prices are about 4% higher now than they would have been if the dollar-pound exchange rate had remained constant since the start of the year, according to data from RAC compiled by Boomberg.

Oil prices have surged globally this year as countries emerge from Covid-19 restrictions, causing their demand to rebound at a time when producers are only drip feeding new barrels into the market. 

Traders are also fretting over supply following the invasion of Ukraine by major producer Russia, whose exports are being sanctioned by the EU.

Fuel prices have gained even faster than crude oil because of a shortage of capacity in the world’s refining industry. 

Only a portion of the UK’s retail fuel prices are being boosted by the exchange rate, because the government also taxes sales heavily.

SEE HOW MUCH YOU GET IF YOU SELL

NGN
This website uses cookies We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that you've provided to them or that they've collected from your use of their services
Real Time Analytics