The sinking value of the pound is making it difficult for drivers to save money on petrol (Picture: Getty)
Brits could see the cost of filling their car up rise by £3 if the value of sterling sinks to parity with the US dollar.
The pound is currently worth $1.07 – down from $1.35 earlier this year – and it appears set to keep falling.
Petrol and diesel is purchased with dollars, so this decline means the UK is buying less fuel for each pound it spends.
If the pound descends to the same value as the dollar, it could push the price of petrol up to 68p per litre before VAT or fixed fuel duty.
On average, this would mean families have to pay £3 more every time they fill up their cars.
The worrying rise in the price of petrol has come despite the cost of oil dropping back to where it was before the Russian invasion of Ukraine.
This is because another huge slump in the value of sterling took it to a new 37-year low on Friday.
The value of the pound plummeted 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 ‘severely undermining’ any desperately needed savings on petrol, the AA said.
Drivers are already estimated to be paying £4.95 more to fill up a typical 55-litre family car.
Sterling has been weak against the dollar for months, largely because of the increased strength of the US currency – but the pound has also dropped against other currencies.
The Bank of England previously launched another 0.5 percentage point interest rate hike to 2.25% and warned the UK could already be in a recession.
The central bank had originally projected the economy would grow in the current financial quarter but said it now believes GDP will fall by 0.1%.
This means the economy would have seen two consecutive quarters of decline – the technical definition of a recession.
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