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Fuel costs plunge after oil barrel price drop

FUEL prices have fallen by 4c in the past month after the price of oil dropped to its lowest level in eight months.

And motorists can expect to pay as little as 157c for a litre of petrol and 148c for diesel in July, as prices are expected to fall a further 5c over the next month.

A litre of petrol now costs an average of 162.9c and diesel 153.6c, according to the latest fuel price survey, with further price drops expected over the next few weeks.

Seasonal factors and the global manufacturing downturn have driven down the price of Brent crude oil, which dictates European fuel prices, from an average of $106 in March to around $80.

But there is a three-to-four week lag between a change in prices on the international markets and a change at petrol station forecourts.

The fuel price survey, which is conducted in the first week of every month, shows petrol prices fell from 165.9c in May to 162.9c in June. Diesel has dropped from 157.5c to 153.6c.

Signs of a slowdown in manufacturing in China, Europe and the United States have helped reduce demand.

A survey by website www.pumps.ie says average petrol prices are now 159.9c and diesel 149.9c, but there is a wide variation in prices, even in the same area.

For example, a litre of petrol at Great Gas in Letterkenny, Co Donegal, cost 154.9 and diesel 145.9c yesterday, while Esso in Letterkenny was charging 152.8c and 143.8c.

Irish Independent