Saturday 1 October 2016

Low petrol prices at pumps coming to an end

Published 24/05/2016 | 02:30

Over a month, the higher cost of petrol has added €5 to the spend on 150 litres of unleaded a month. A typical Irish motorist now paying out around €195 per month for fuel. Stock Image
Over a month, the higher cost of petrol has added €5 to the spend on 150 litres of unleaded a month. A typical Irish motorist now paying out around €195 per month for fuel. Stock Image
Biggest issue is tax: AA’s Conor Faughnan

The days of low petrol prices at the pumps will soon be over, motoring organisation AA Ireland has warned.

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A survey it carried out shows that both diesel and unleaded fuel prices continued to climb this month. It said a litre of petrol now costs an average of 129.1c, which is up 3.1c.

Diesel rose by 2.1c to 113.2c, according to the AA's survey.

Rising pump prices are a result of the recent rise in the cost of oil, which is now sitting at $47 per barrel, up from $44 last month.

Over a month, the higher cost of petrol has added €5 to the spend on 150 litres of unleaded a month. A typical Irish motorist now paying out around €195 per month for fuel.

AA director of consumer affairs Conor Faughnan said prices at the pumps will continue to go up.

"If oil pursues its current pattern, we could see fuel prices continue to accumulate well into 2016," he said. "Much has been said about oil producers appearing to edge closer towards limiting their output and the growth in prices would seem to be reflective of recent headlines."

He said consumers found it difficult to understand how global trading affected the price of petrol at the pumps.

But he added that motorists were now seeing the minor side-effects of rumoured oil production limits. However, the AA said that this, and even currency strength, was only part of the story of high fuel prices for Irish consumers.

"The bigger issue is tax, and of your €190 or so monthly fuel bill nearly €130 goes directly to the Government in tax.

"We would like to see the new government remove the austerity taxes slapped on between 2008 and 2012. This is nothing short of an anti-stimulus measure and is effectively taking money out of the pockets of consumers," Mr Faughnan said.

Irish Independent

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