Sunday 4 December 2016

Petrol may soon be 'cheaper than water'

Geraldine Gittens

Published 14/01/2016 | 12:29

Stock photo: Man filling car with petrol
Stock photo: Man filling car with petrol

Petrol in Ireland may soon be cheaper than the average bottle of water after a collapse in the value of oil.

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The price of petrol has already fallen to under €1.20 a litre, while diesel has fallen to less than €1 on some forecourts.

Dermot Jewell, Policy and Council Advisor with the Consumer Association of Ireland says experts are predicting that fuel prices will continue to drop, making it cheaper than water.

Currently, a one-litre bottle of Ballygown is currently €1.00 in Tesco, while a one-litre bottle of Volvic in Supervalu costs €1.06. Prices can vary greatly from brand to brand and shop to shop, but market analysts are predicting that bottled water may, for a time, be more expensive than petrol.

“If you listen to the experts and their comments now and if you look to the reality we’ve seen at the pumps of the price reduction below a euro for diesel, then yes it is very, very likely that it is a real potential.”

“Petrol would drop below the somewhat outrageously price bottled water.”

“How long it will last is another issue. We already have stations here in Ireland who are selling [diesel] below a euro a litre.”

“Experts are saying that there is still the potential for the 99.999 cents to drop as much as another 14 cent which would be phenomenal.”

Read More: You tell us - As fuel prices plunge, where is the cheapest place to fill your tank?

“It’s exceptionally good news. What needs to be brought into mind is that this is a factor in the reality of the goods and services we have imported. So if the fuel is cheaper we could see a reduction in the prices of goods and services. It should reasonably follow.”

Garages in Mayo and the north-west of the country have seen the lowest prices for diesel and petrol.

But the average price of a litre of petrol is now 125.9c, with diesel at 114.9c across the country, according to Pumps.ie.

This time last year, motorists reported paying as little as 122.8c per litre of petrol and 117.8c for diesel.

Oil prices fell again yesterday after a rise in weekly US crude inventories fed into bearish sentiment about the deepening global supply glut that has brought prices close to levels not seen since 2003.

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