With the news that fuel prices have risen for the fourth month in a row, many drivers are concerned. Add the recent Brexit vote to the mix and there’s even more uncertainty. Here’s what we think will happen in the near future when it comes to prices at the pumps.
Will fuel prices continue to rise?
Here in the UK, we have been enjoying cheaper fuel prices of late. This is due to the cost of oil dropping to record lows, almost halving in price in the past 2 years (from $100 a barrel to less than $50). However, fuel prices at the pumps is slowly but surely creeping back up in cost.
To many, this is not a concern due to the fact that oil prices worldwide are not rising, so this recent increase is likely to stabilise sooner rather than later. In fact, some even predict another drop in costs, as various worldwide production issues are dealt with. In short, none of us like to see costs rising, but such hikes do not seem to be a substantial concern, as long as the price of oil remains low.
What will Brexit mean for fuel? Recent general fuel trends are all well and good, but add in Brexit and the value of the pound dropping and drivers are given another issue of concern for their fuel headache.
There are many disagreements about the impact Brexit will have on our fuel. Currently, the fall in sterling in the shadow of Brexit means we’re paying more for our fuel than we would with a strong pound. However, as Thisismoney.com reports, the global low cost of oil has to some extent mitigated the fall and rises haven’t been as sharp as some feared (just a 0.5p rise) post-referendum. As the aftermath of Brexit settles, and as long as oil prices stay low world-wide, there is unlikely to be a large shift in the price of our fuel.
Much like many aspects of the economy, uncertain times lead to fluctuations and this, at the moment, is the case with fuel. Long term, drivers shouldn’t have anything to fear. Indeed, in the context of overall fuel prices, consumers are actually in a great position that is likely to continue for as long as the price of oil stays low!
Find out how to get the best value for your fleet here: www.fuelcards.co.uk
What do you think the future holds for fuel prices?