Sunday 25 September 2016

Low petrol prices at pumps set to end, customers warned

Charlie Weston Personal Finance Editor

Published 23/05/2016 | 10:57

Fuel prices rising again at service stations
Fuel prices rising again at service stations

LOW petrol prices at the pumps are coming to an end, motoring organisation AA Ireland has warned.

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A survey it carried out shows that the both diesel and unleaded fuel prices continued to climb this month.

It said a litre of petrol now costs an average of 129.1c, this is up 3.1c.

Diesel rose by 2.1c to 113.2c, according to the AA’s survey of national fuel prices.

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 just under €5 to the cost of 150 litres of petrol a month.

Consumer Affairs director Conor Faughnan
Consumer Affairs director Conor Faughnan

A typical Irish motorist is now spending around €193.65 per month on the fuel.

AA Director of Consumer Affairs Conor Faughnan 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 huge trades made on international exchanges are far removed from the consumer.

Mr Faughnan said motorists were seeing the minor side effects of rumoured oil production limits.

However, the AA believes this, and even currency strength, to be 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. If oil pursues its current pattern we could see fuel prices continue to accumulate well into 2016.

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

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