Fleet News

Rise in fuel prices feared as Sterling weakens

FUEL prices could increase shortly if the value of Sterling weakens against the US Dollar - the currency in which oil is internationally purchased. The strength of the Pound has meant that fuel prices have remained more or less static in the last quarter of 1997 but PHH AllStar believes price rises could be on the way.

Keith Greenhead, divisional general manager, fuel, of PHH Vehicle Management Services which operates the AllStar fuel card, said: 'UK oil companies are buying the same volumes as they always would but are having to convert less Sterling to Dollars to do so. This has been the situation recently, so fuel prices have remained static or dropped slightly, with small price fluctuations at the pumps due mainly to exchange rate variations. The Pound is now lower which is good for UK export, but means fuel prices will rise again.'

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