The Petrol Retailers’ Association (PRA) has warned a significant increase in diesel prices could be witnessed in the coming weeks.

PRA chairman Brian Madderson noted the unexpected crash in the exchange rate for sterling against the US dollar – falling from $1.58 to $1.48 since mid-June – will be the main driver of future price rises, coming at a time when families across the country will be heading out more often as part of the school summer holidays.

He added, however: “This is at least fully transparent – if still unwelcome – news for motorists, businesses and UK inflation, as the economy struggles to rebound.”

A lack of movement on UK interest rates from the Bank of England, poor manufacturing data and signs the US will “taper off” its quantitative easing strategy over the coming months were all factors leading to the downturn in sterling’s performance.

Coupled with ongoing uncertainty in the Middle East and the subsequent increase in the cost of Brent Crude, motorists could see significant fuel price growth in the near future.

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