Tuesday 23 July 2019

Fill her up - petrol prices at their cheapest since summer 2017

Stock image: PA
Stock image: PA
Independent.ie Newsdesk

Independent.ie Newsdesk

It's time to hit the forecourt as fuel prices have dropped to their lowest level since August 2017.

Motorists have received some positive news to start the year, as the average cost of a litre of petrol currently sits at 132.9c.

Diesel currently costing an average of 127.9c per litre, the lowest price recorded by the AA since April of last year.

A drop in crude oil prices globally is main driver behind the fall in prices at the pump.

Fuel prices trended downwards for the second successive month, following a 2018 which had been largely dominated by high fuel costs.

According to the AA’s latest monthly fuel prices survey, a litre of petrol is down from 136.9c in December. Meanwhile, diesel car owners can expect to pay 127.9c per litre on average – a drop of 4c from the previous month.

“2018 felt like a year of unrelenting surges when it came to pump prices, so it’s certainly reassuring for motorists to see prices trending in the opposite direction to start the New Year,” Conor Faughnan, AA Director of Consumer Affairs stated.

“However it’s important to remember that we are not seeing this drop as the result of an act of kindness from government or an easing of taxes, but as a result of international factors which are always vulnerable to reversing in the opposite direction at any instance.”

He added: “As with any purchase, the most important thing for those who are trying to cut costs at this time of year is to shop around when buying petrol or diesel. Simply put, it’s always better to be loyal to your own pocket instead of being loyal to any particular garage.”

Among the main drivers for the change in pump prices has been a significant reduction in the cost of crude oil. Having floated between $75 and $85 per barrel for much of 2018, crude oil has largely remained between $55 and $65 since December of last year. However, the AA has highlighted that the excessive tax placed on both petrol and diesel means motorists are still paying more than they should be for their fuel.

Currently, the AA estimates that 64.42pc of the cost of each litre of petrol sold in Ireland is made up of various taxes. Meanwhile, 57.71pc of diesel's pump price comes from government taxation.

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