Fuel prices may be set to rise in wake of historic Brexit vote

Drivers are likely to face higher petrol prices in the wake of the UK’s historic decision to leave the European Union.

According to the RAC, the fall in the value of the pound that followed the Brexit vote could prompt a rise in prices at the pumps.

RAC Fuel Watch spokesman Pete Williams said: “It is too early to tell what the implications are in the mid to long term but it is likely motorists will see some volatility in the price of fuel on UK forecourts in the coming weeks.

“While the cost of crude has dropped as markets react to fears of a global economic slowdown the fall in the value of the pound to levels not seen since 1985 means that retailers are today facing an increase in the wholesale price of around 1.5 pence which will be very likely passed on to motorists at the pump.”

In one of the highest turnouts at a UK-wide poll in recent years, 52% of people voted for the country to sever its ties to the EU, compared to 48% who wanted to remain a part of it.

The result has led Prime Minister David Cameron to announce his decision to step down by October, saying that the country needed “fresh leadership”.

He had been campaigning for the UK to remain part of the EU, but will now be replaced by a successor to be named at the upcoming Conservative Party conference.

Following the referendum outcome, there was significant instability in financial markets, with the pound falling in value and the stock market seeing a loss of 8% in early trading.

Bank of England governor Mark Carney announced he was making £250 billion available to support markets as he pledged that the Bank of England “will not hesitate to take additional measures as required as markets adjust and the UK economy moves forward”.

Britain’s exit of the EU will now be negotiated following the implementation of Article 50 of the Lisbon Treaty, which gives the UK two years to withdraw.

The referendum saw more than 30 million people cast their vote, with the turnout standing at 71.8% of the population.

Copyright Press Association 2016. Motoring News articles do not reflect the RAC's views unless clearly stated.