• Saturday, June 15, 2024
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BusinessDay

Items you may likely spend more to buy while in the UK because of Brexit

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Summer is still in full swing. As Nigerian families make arrangements to travel to different destinations around the world where they will spend their summer, those who are going to the United Kingdom might find they will have to pay more for certain items.
The effect of the Brexit on the pounds cascaded down to different industries in Britain. On one hand are the luxury fashion providers who are counting their losses on one hand due to reduced prices but have seen a spike in online purchases, on the other are other industries such as gas providers and gadget companies who have seen prices soar.
A data recently released by the Petrol Retailers Association in London, disclosed that the price of gas also known as petrol in the UK is increasing. Before the British vote, the average price of gas in the UK was about £1.12. Since gas is priced in US dollars on world market, the depreciation of the pound against the dollar means that the British currency buy less gas at the moment.
Despite drop in the price of gas globally, the pump price have gone up by 1 pence per litre since the vote. And more increases are expected as the new administration under Theresa May chart put plans in motion to finally sever the UK from the EU.
Gadgets are also affected as technology companies have begun to revise their prices in view of the weak pound. OnePlus, a Chinese phone company has already announced it will be hiking prices by 6.5 percent very soon. The company said it is being forced to hike prices of gadgets sold to UK businesses because components are sold in the US dollars and therefore it cannot continue selling it at previous levels. Companies like Lenovo, Apple and HP said they are monitoring the situation.
Prices of gas going up might likely affect the industries that it services directly. For instance the transport industry may also be compelled to review prices. This may explain why airlines such as British Airways, Delta and Virgin Atlantic are yet to bring down their prices. A stakeholder in the industry says this is unlikely, not only because of the price of gas in the UK, but they are also exposed to the economic realities in Nigeria.
What travellers might expect however, are prices of taxis and in-country transportation in the London metropolis being revised or staying at their current level. Similarly summer vacationers who may want to invest in a gadget while in the UK can have a rethink as you may be paying more than people in other countries.
That said, the UK remains the choice destination for tourists in view of other items like hotel accommodation, entertainment, food and beverages which prices have reduced compared to other countries in Europe.
FRANK ELEANYA