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Brexit would force up family fuel bills – AA

14:32 23 February 2016

British families could face fuel bill rises of 18.7p per litre if the UK votes to leave the European Union in the upcoming referendum.

British families could face fuel bill rises of 18.7p per litre if the UK votes to leave the European Union in the upcoming referendum.

Archant

A decision for Britain to leave the European Union could lead to UK families paying hundreds of pounds more to fill up their cars, a motoring organisation has warned.

Petrol prices may rise by as much as 18.7p per litre following a Brexit vote in the upcoming referendum, according to AA analysis released exclusively to the Press Association.

The study stated that this “worst-case scenario” could become a reality if a fall in the value of sterling as a result of the UK pulling out of the EU is combined with a rebound in the price of oil.

A Goldman Sachs report, published earlier this month, predicted that the pound could tumble by up to 20% in the wake of Brexit.

The AA warned that could mean a two-car family who refuel twice a month would pay £494 more for petrol each year if it happened alongside a rebound in the price of oil to more than 90 US dollars.

It said this could occur if oil cartel Opec agreed production limits and Amercian drivers continued to increase petrol consumption.

The fall in the value of the pound could lead to a £137 rise in the cost of filling up even without any change in oil prices, the AA found.

The referendum on whether Britain should stay in or leave the EU is expected to be held on June 23.

Edmund King, AA president, said: “We don’t take a view as to whether the UK should leave the European Union as that is up to the people to decide in a referendum.

“However, even before the referendum vote, it seems that financial reports suggest leaving the EU could lead to a sharp fall in the value of the pound which in turn could hit pump prices within days.

“The instability of the pound – combined with Opec countries already looking to freeze oil output and the usual increase in fuel use during the US motoring season – could mean a significant hike in petrol costs.”

5 comments

  • Here we go again !...more scare mongering !....Oil prices are fixed and negotiated on the world market !....we have more to fear from Osborne who likes taxes that hit the poor driving to work !..rather than tax the wealthy who obviously can afford to pay more !...

    Report this comment

    freedomf

    Friday, February 26, 2016

  • Considering the price of Oil is globally fixed and negotiated !. any price rise affects all Countries !...we here are most at risk from Osborne....who would rather tax Petrol which affects the hard working British person than Tax the wealthy more !..

    Report this comment

    freedomf

    Friday, February 26, 2016

  • Pure scaremongering by the AA based on nothing at all. The reality is leaving the EU would have minimal affect if any on fuel prices and remember we produce oil in the UK that would go up in value

    Report this comment

    Bill Jackson

    Friday, February 26, 2016

  • All this scare mongering. GET OUT NOW. Don't be conned by it. Other countries out of the EU survive and so will the UK. The world is a big place and people will still want stuff from Great Britain. We were conned into joining as a 'Common market' and now over the years we have lost all our traditions, and sovereignty and more. And the Billions we pay into the pot can be used on our own people instead of the nobodies elsewhere. Rule Britannia.

    Report this comment

    dwoody7

    Thursday, February 25, 2016

  • I'm surprised to see this published by the EDP days after the AA President that is quoted in the article issued an apology for making this ridiculous claim. It is based on figures that Goldman Sachs have plucked out of the air and has no basis in reality whatsoever. Let us not forget that Goldman Sachs are not impartial. They are funding the campaign to keep Britain in the EU to the tune of millions of pounds. They made £500million by fraudulently cooking Greece's books so that they could join a Euro that has brought disaster and human suffering to that once proud nation. A quick Google in future would prevent embarrasment.

    Report this comment

    Gazcon

    Wednesday, February 24, 2016

The views expressed in the above comments do not necessarily reflect the views of this site

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