Drivers have been hit by higher fuel prices due to the pound's falling value, according to new analysis. The drop in sterling has added 7p per litre to drivers’ fuel bills over the past year, a review by the Competition and Markets Authority (CMA) has found.
The review found that the “principal drivers” of high fuel costs are rising oil prices and increased profit margins at oil refineries, with the growing cost of oil accounting for around a 20p per litre hike in UK fuel prices in the past 12 months. The drop in the value of the pound compared with the dollar over the same period added a further 7p per litre to fuel bills, which is more than the 5p per litre cut in duty implemented by the Treasury in March.
The CMA found that the growing gap between the price of crude oil entering refineries and the wholesale price of petrol and diesel leaving them accounted for a 24p per litre jump in pump prices in the past year.
