In the News
Why the fall in sterling keeps petrol pump prices high
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.
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.
Graham Watson
Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.
You might also like
Sterling and the UK Economy
30th November 2022
Sterling and the UK Economy - A-Level Economics Essay Walkthrough
Practice Exam Questions
Currency Depreciation and the Trade Balance - Chain of Reasoning
Practice Exam Questions
Currency Economics - Egypt Devalues their Exchange Rate
17th November 2022
Japan economy unexpectedly shrinks after yen slide
15th November 2022
Economics of Floating versus Fixed Exchange Rates
Topic Videos
Floating versus Fixed Exchange Rates
14th November 2022
The Slumping Pound - Why Does it Matter?
18th September 2022