Fuel prices see highest single month increase since March 2015

Claire McGovern

Reporter:

Claire McGovern

Fuel prices see highest single month increase since March 2015

The cost of fuel has reached its highest level since late 2015 according to the latest AA Fuel Price Index, as the average price of a litre of petrol rose by 4.9c and diesel by 5c within the last month.

The AA’s analysis shows that the average price of a litre of petrol now sits at 136.3c per litre with a litre of diesel costing an average of 126.9c. The latest figures represent the latest in a series of fuel price increases for motorists, with the price of a litre of petrol now at its highest since September 2015. Meanwhile, the price of diesel has climbed to its highest level since August 2015, as prices of petrol and diesel rose for the fourth successive month.

The latest escalation in petrol and diesel prices further highlight the need for fuel taxes introduced in response to the economic recession to be reviewed by Government.

Over 85c of the per litre petrol price is made up of taxes, with tax accounting for 73c of diesel pump prices. However, approximately 20c and 18c of the taxes on petrol and diesel respectively consists of five separate tax increases introduced between 2008 and 2012 as an emergency measure.

Despite improvements in the Irish economy and the emergency era coming to an end, taxes which were once deemed a short-term measure have lived on. The AA warned that this in turn has a negative impact on people’s ability to take up employment, particularly in the case of those living in isolated areas.