THE fall in petrol and diesel has been reversed.
Prices at the pumps have started to rise again in line with a rise in traffic volumes, according to the latest AA Ireland survey.
The cost of a litre of petrol had fallen last month to the lowest level recorded by the motoring organisation which was in March 2016.
But the latest AA fuel price survey shows the price of a litre of petrol rose this month by 4.1c.
A litre of petrol now costs 125.9c on average. This is up from last month’s average price of 121.8c.
Diesel prices saw a similar increase, with that fuel now costing on average 117.3c per litre compared with last month’s price of 113.9c.
Despite this increase, both fuels remain significantly below prices seen at the start of 2020.
At the beginning of the year a litre of petrol cost 144.5c, with diesel costing 135.9c on average.
AA director of consumer affairs Conor Faughnan said crude oil prices have increased only slightly over the past month.
He said the big change has been in terms of national and global demand for both fuels.
On many major routes across the country, such as the M50, M11 and N7, traffic levels have returned to between 80pc and 90pc of volumes seen 12 months ago, Mr Faughnan said.
“With similar trends being seen in other countries as lockdown restrictions are eased, the global demand for petrol and diesel has begun to increase with this now reflected at the pumps.”
He said no-one can truly say with any accuracy where fuel prices are heading in the long-term.
But for now it appears that the month-on-month drops in petrol and diesel prices which we have seen since February are a thing of the past, Mr Faughnan added.
Following a short-term, significant drop in late April and early May, crude oil prices have continued to trend upwards.
But still remain significantly below levels seen before the Covid-19 outbreak, AA Ireland said.
Currently, Brent Crude Oil is trading at approximately $43 per barrel, up from a price of $40-$41 per barrel in late June.
However, this price of crude oil remains significantly below prices of up to $65 per barrel seen in late 2019.