Your tank of petrol could cost £3 more because of a falling pound

Hand fills a car with petrol.

The falling value of the pound is making it difficult for motorists to save money on petrol (Image: Getty)

Britons could see the cost of filling up their car rise by £3 if the value of the pound falls to parity with the US dollar.

The pound is currently worth $1.07 – down from $1.35 earlier this year – and looks set to keep falling.

Petrol and diesel are bought with dollars, so this drop means the UK is buying less fuel for every pound it uses.

If the pound falls to the same value as the dollar, it could push the price of petrol up to 68p per litre. liters before VAT or fixed fuel tax.

On average, this will mean families paying £3 more every time they fill up their cars.

The worrying increase in the price of petrol has come despite the fact that the price of oil has fallen back to where it was before the Russian invasion of Ukraine.

This is because another huge fall in the value of the pound took it to a new 37-year low on Friday.

Graph showing the value of the fall of the pound.

The value of the pound fell to the lowest it has been in almost four decades

These rates have not been seen since 1985, when Margaret Thatcher was Prime Minister.

The weakened pound is ‘undermining’ any desperately needed savings on petrol, the AA said.

Drivers are already estimated to pay £4.95 more to fill up a typical 55-litre family car.

Sterling has been weak against the dollar for several months, largely due to the increased strength of the US currency – but the pound has also fallen against other currencies.

The Bank of England earlier launched another interest rate hike of 0.5 percentage points to 2.25% and warned that the UK could already be in recession.

The central bank had initially forecast the economy would grow in the current financial quarter, but said it now believes GDP will contract by 0.1%.

That means the economy would have seen two straight quarters of decline — the technical definition of a recession.

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