SCOTTISH MOTORISTS ALSO TO BE HIT BY WEAKENING POUND

Published 04/09/2014 00:00:00 in Press Releases

“In recent days the pound has suffered its worst exchange rate performance against US dollar since Lehman’s problems triggered the global financial collapse in 2008.  From a high of over $1.71in mid-August the pound has weakened to below $1.65 and this has held up UK wholesale prices of retail road fuel by nearly 2.00ppl”, said Brian Madderson, Chairman of the Petrol Retailers Association

Now currency specialists in the city, such as Goldman Sachs, are forecasting that the pound could devalue by at least a further 5% or more if a ‘YES’ vote succeeds in the Scottish Referendum on 18 September.  This would immediately increase the cost of road fuel by as much as 3.00ppl assuming that the global market for crude oil remains stable. However this is by no means certain given the current geo-political tensions in Ukraine, Syria, Iraq and Libya.

Madderson continued, “Experian Catalist data shows that total retail fuel volumes in Scotland are 3.1bn/litres/year so any run on the pound caused by the Referendum could costs motorists and businesses north of the border at least an extra £155m a year. For the rest of the UK the extra cost would approach a massive £1.75bn each year which would be a huge negative drag on the economy and significantly increase inflation.

“The road fuel volume split by sector in Scotland reflects the extraordinary and unchecked increase in supermarket forecourt development – up by a staggering 90% since 2000 which compares with 20% for the remainder of the UK.  This is almost certainly the major cause for so many small and often rural independent forecourts closing down their pumps leaving huge swathes of the country without refuelling facilities. This has to be an urgent issue for any Scottish Government to resolve”.

 

ENDS

NOTES TO EDITORS:

Rupal Rawal, Communications Officer
Tel: 020 7307 3412
Mob: 07528 977 157
Press Office direct line: 020 7307 3422
Press Office fax: 020 7307 3406

Web: www.rmif.co.uk  Email: rupal.rawal@rmif.co.uk

The Retail Motor Industry represents the interests of operators in England, Wales, Northern Ireland and the Isle of Man providing sales and services to motorists and businesses. The RMI has a formal association with the independent Scottish Motor Trade Association which represents the retail motor industry in Scotland.

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