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Petrol prices are expected to drop 7c 'within weeks'

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Petrol prices are on the rise

Petrol prices are on the rise

Petrol prices are on the rise

PETROL prices could fall by a further seven cent in the coming weeks as cuts in the cost of a barrel of oil filters through to motorists.

AA Roadwatch expects the price at the pump to have fallen again by the time it conducts its next survey.

Its director of consumer affairs Conor Faughnan said average prices in recent days stood at "just a whisker over €1.30 per litre".

"But that's a snapshot of something that's actually in a state of motion, and it's falling as we speak," he said.

"We expect that when we conduct our February fuel price survey in about three weeks' time we will see an additional fall of between six and seven cent per litre.

"The omens appear to be good, but you can't look beyond a certain time span with any certainty.

"A variable that seems to be pulling against us is that the euro continues to weaken against the US dollar."

Mr Faughnan said that while prices look set to fall again within weeks, "after that it's by definition speculative".

"You'll find plenty of people forecasting one way or another as to what's going to happen to crude oil prices during 2015, but they are all, with varying degrees of insight, just guessing," he added, pointing out there was a "time lag" effect which had to be taken into consideration.

crucial

He also said a crucial factor that underpins petrol pricing in Ireland is that the Government must receive a minimum amount in taxation, regardless of what the motorist pays.

International trends such as high production levels for crude oil - coupled with sluggish global demand - will help keep prices competitive in the coming months.

Central Statistics Office figures show that petrol prices in Ireland fell by 3pc last year, with diesel dropping by 5.5pc.

hnews@herald.ie


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