Fuel prices to soar by 5p a litre within weeks after pound slump

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Motorists are being warned that fuel prices could rise by 5p a litre by the end of the month.

The fall of sterling combined with Brent crude oil hitting a 52-week high makes it a double whammy for petrol and diesel prices.

Brian Madderson, chairman of the Petrol Retailers Association (PRA), warned: "Motorists can expect increases of up to 4 or 5ppl by the end of the month unless there are favourable corrections to the exchange rate and global oil prices.

"The double impact of the pound weakening against the US dollar and global oil prices strengthening will cause pump prices to move sharply upwards."

The PRA is calling on the Chancellor Philip Hammond to reduce excise duty in his Autumn Statement from 57.95ppl to 55ppl to ensure consumer spending does not drop.

The pound is at its lowest level against the dollar since 1985 amid talk of the UK making a 'hard Brexit'.

Meanwhile, Russia has signalled it will back the proposal by the Organisation of the Petroleum Exporting Countries (Opec) to freeze oil production in an attempt to squeeze up oil prices worldwide.

In September, Opec members voted to cut production for the first time in eight years.

Opec aims to agree to cut about 700,000 barrels per day at its policy meeting at the end of November, bringing its output to 32.5-33 million barrels per day.

"Russia is ready to join the joint measures to cap production and is calling for other oil exporters to join," said Vladimir Putin.

Speaking at the World Energy Congress in Istanbul, the Russian President said that low oil prices had contributed to diminished investment in the global energy sector.

He added that if the trends continued, a global shortage in oil would give rise to "unpredictable jumps" in prices and said a cut in production is "likely to be the only right decision to maintain stability of the global energy sector".

Thanks to sky.com