Brexit's First Effects For Motorists - Price of Diesel Will Rise In The UK

Brexit, the referendum in which British citizens were asked if they want to leave the EU or stay, has begun to have adverse effects on the public.
Refueling 1 photo
We are writing about the British public, but not just motorists, who will be affected by the situation. As British media has learned, the price of diesel fuel will increase by the end of this month, and local organizations are already arguing about the changes.

According to the numbers presented to Autocar, a rise in the price of diesel by two to three pence ($ 0,02 - 0,04) per liter is expected by the end of this month.

However, rumors announced a potential increase of eight pence ($ 0,11) per liter (0,264 US gallon) in the case of an unnamed supermarket chain, while the bulk price would also increase by five-to-six pence per liter.

At a first glance, it would seem that only motorists that own diesel-engined vehicles would be affected, but a rise in the price of diesel always hits multiple branches of the economy.

One must consider the fact that freight is being carried on the road using diesel-engined trucks, most packages are being delivered in vans that run on diesel, and agriculture also uses the fuel.

In turn, any increase in the price of diesel will lead to a price hike of any service that has to do with diesel in its supply or production chain, and you would be surprised how many people will be affected by these changes.

The increase in the price of diesel comes after the Sterling has decreased in value, and oil companies will have to put their conversion losses somewhere, and the consumer’s wallet is always the most popular choice.

However, British citizens should fear the effects of Brexit when the EU and the United Kingdom will finally seal a deal on the matter. If the Lisbon clause will be activated, the UK will still have about two years until it leaves the European Union, and the evolution of its national currency will dictate oil prices in the future.

The Sterling will not be the only deciding factor, as the UK will need a trade deal with the EU, while external factors will also play a part in the complex economy that governs oil prices.


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