Scotland Votes “No.” What does it mean for Petrol Prices?

This morning, people all over the world woke up to the news that the citizens of Scotland had voted against independence from Great Britain in an historical referendum. Prior to the voting process, many pundits had made predictions as to the likely outcome of a “yes” vote for independence. One of these predictions, as reported in The Telegraph, was a likely increase in fuel prices across the UK, in the region of 2 pence per litre. This was due to a likely fall in the value of Sterling against other currencies if the long-term currency union had been broken.
Now Scotland has voted “no,” it’s quite likely that UK motorists will in fact see a fall in the price of fuel. The Telegraph predicts a similar difference—around 1.6 pence per litre, due to an opposite effect on the value of Sterling.
Real-life events seem to mirror this prediction. In the wake of the “no” vote, Sterling soared in value, and although it has settled slightly, the Pound is (at the time of writing) worth €1.27 or $1.63.
Inevitably, it may be some time before fuel retailers pass on savings to customers, but in the absence of any other significant global events, it’s fair to predict that fuel costs may now drop a little more. This is great news for all UK motorists, who are already able to buy petrol and diesel at prices far lower than in recent years.

IMAGE CREDIT: Wikimedia Commons

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