Surging fuel costs have led to diesel and petrol prices rising by 11c and 22c a litre respectively in the past fortnight alone.
It will now cost €750 more this year to fuel a petrol car than the annual fuel cost last year, according to the latest survey from AA Ireland.
The AA says a typical car has the capacity to hold 50 litres of fuel, meaning a full tank of petrol will cost €11 more than two weeks ago with a full tank of diesel working out at €5.50 more than a fortnight ago.
Petrol prices have increased 11.5pc in the last two weeks. This is up from an average of €1.91 per litre to €2.13 now.
Petrol is 41pc more expensive than last year and 66pc more expensive than two years ago, according to Paddy Comyn of AA Ireland.
Diesel is now 45pc more expensive than last year.
It has jumped in price at the pumps from €1.41 per litre to €2.05 per litre.
Mr Comyn said: “It now costs the average motorist of a petrol car €750 more than last year to fill their car for a year – with the average diesel driver now spending €640 more per year than last year.”
The cost of diesel and petrol is having a huge impact on household budgets, especially for families living in rural areas who are more dependent on their cars to get around.
High prices for motor fuel have led to persistent calls for larger cuts in the taxes on petrol and diesel. Indeed, more than half of the cost per litre at the pumps is made up of taxes and levies.
Crude-oil prices have shot up this year as Russia’s invasion of Ukraine compounded supply concerns, and as oil demand recovered from Covid-19 lockdowns.
Brent hit $139 a barrel – the highest since 2008 – in March.
The situation in this country has been compounded by the weakness of the euro against the dollar. Crude oil is priced in dollars. The American currency has surged to a 20-year high, inflating the cost of dollar-denominated goods such as crude oil.
Supply remains tight, with Opec (the Organisation of the Petroleum Exporting Countries) and its allies unable to deliver in full on pledged output increases because of a lack of capacity in many producers, sanctions on Russia, and output in Libya roughly halved by unrest.
Diesel and petrol are now trading at more than €2 a litre on Irish forecourts, in spite of the Government’s recent cut in excise duties.
Last week it emerged that the Government failed to deliver a cut in fuel prices promised last November by Transport Minister Eamon Ryan that would have saved motorists around €20m so far this year.
The fuel industry claimed that an “oversight” on the part of officials meant that the cut to the National Oil Reserves Agency levy did not happen.
The Department of Environment Climate and Communications confirmed to the Irish Independent that the promised 1c-per-litre price cut to motor fuel “has not been proceeded with”.
Mr Ryan, the Green Party leader, claimed a Government “change of thinking” resulted in a decision not to proceed with a fuel levy cut for motorists.
The surge in the cost of diesel and petrol is one of the key reasons inflation in this country hit a 38-year high of 7.8pc in May.