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While oil prices are back to pre-Ukraine war levels, a weaker pound results in higher costs for motorists
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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.