In the News
Why the fall in sterling keeps petrol pump prices high
![](https://tutor2u-net.imgix.net/user-photos/graham-watson.png?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
24th September 2022
You might be forgiven for wondering why there's been a lot of talk about the depreciation of the pound this week. Well, here's a great example.
![](https://tutor2u-net.imgix.net/library/Economics/statistic_id1293135_weekly-average-road-fuel-prices-in-the-united-kingdom-2022.png?auto=compress%2Cformat&fit=clip&q=80&w=800)
Because all commodities are traded in dollars, a fall in the value of the pound means that we have to sacrifice a greater quantity of pounds to get the dollars required to buy oil, and other commodities.
Thus, while oil prices are back to pre-Ukraine levels, the price at the pump is 11p more expensive than it would have been had the pound remained at February's £1:$1.35.
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