The depreciation value of the pound “adds £5 to the tank of petrol”

Drivers are paying an extra £5 for a tank of petrol due to the fall in the value of the pound, according to new analysis.

Pump price savings resulting from the return of the cost of oil to pre-Russian invasion of Ukraine are “severely undermined” by the weak pound, the AA said.

The motoring organization has calculated that the price of petrol on UK forecourts would be ‘at least’ 9p per liter cheaper if the pound had maintained its value of US$1.35 in mid-February, instead of the level of 1.14 US dollars this week, which was a 37-year low.

The difference in price at the pump adds around £4.95 to the cost of filling a typical 55-litre family car.

Petrol averaged 164.8p a liter at the start of the week, down from 173.5p in mid-August.

But the 8.7p drop is less dramatic than the 15p reduction between mid-July and mid-August.

The average diesel price fell by 12.5p between mid-July and mid-August, before falling a further 3p to 181.3p at the start of the week.

AA fuel price spokesman Luke Bosdet said: “The influence of the exchange rate is often overlooked when drivers compare movements in oil prices with those at the pump.

“Right now it’s critical. Oil and fuel in the commodity markets trade in dollars, making the weaker pound very bad for motorists.

“Oil prices are back to where they were at the start of the war in Ukraine, but petrol is 15 pence a liter more expensive.

“Two-thirds of this higher cost is due to the weaker pound.”

The British pound has been weak against the dollar for months, largely due to the strength of the US currency.

Mr Bosdet added that it is possible to buy petrol at around 10p a liter below average prices by finding a “competitive forecourt” selling the fuel for less than 155p a litre.

In July, the Competition and Markets Authority recommended that the government consider measures to make it easier for drivers to compare fuel prices at different forecourts in order to increase competition.

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