Motorists wallets to be hit hardest following the vote to leave the EU
As news broke early Friday morning that the votes had been counted and Britain would in fact be leaving the EU following the referendum which saw a record turnout, the general public immediately began to speculate as to how they will be affected.
Predicting fuel prices is always a risky game as their are so many variables which can affect what you pay at the pump, but oil is sold in dollars and following the referendum the value of the pound dropped significantly against the dollar. This is bad news. While it means our exports become more competitively priced, our imports, oil, will become more expensive.
How much more will we be paying?
The AA reported: "Assuming that current market conditions persist over the next 10 to 14 days, the price of petrol at some fuel stations might be expected to rise by 2.25p a litre, or £1.25 a tank."
It is worth noting though that the GBP dropped significantly only on Friday morning and then immediately began climbing again, so there is a chance that it could return to pre-Brexit levels over the coming days and weeks.
Time to buy a hybrid?
Well, it would be nice to save the planet and all, but if you’re purely doing it out of fear of rising fuel costs then you’re probably over reacting. It will take a while for the value of the pound to settle but we can’t imagine the changes will be so drastic that a normal, naturally aspirated, car is no longer economically viable. We’ll have to wait and see.