Latest pump increase leaves petrol at highest level in 6 months

Petrol pump

High petrol prices

The cost of the price of a litre of petrol has hit a 6 month high according to AA Ireland’s latest fuel price analysis, marking the third successive month in which petrol prices have increased.

While there was a little reprieve for diesel car owners, with the cost of a litre of diesel falling 0.2c in the past month to 136.8, petrol prices continue to trend upwards. According to the AA’s analysis, the national average cost of a litre of petrol currently sits at 146.1c, up almost 4c from an average price of 142.3c last month.

 “Unfortunately, at the moment we are seeing significant fluctuations in the cost of crude oil and that’s having a direct effect on what motorists are paying at the pump. A combination of recent OPEC supply cuts along with ongoing political unrest in several oil producing countries means that the gap between the available supply and the global demand for oil has tightened,” Conor Faughnan, AA Director of Consumer Affairs stated. “However, motorists can do their own pockets a favour if they get into the habit of shopping around. Due to the current turbulence in relation to crude oil costs, different garages will be selling both fuels at different rates, depending on the cost of a barrel of oil when they bought their current supply.”

 “The important thing for motorists to remember when it comes to fuel is that you need to shop around in the same way that you do when renewing your insurance. Don’t fall into the habit of going to the same garage every time, but instead take note of which garage is offering the best deal in your area each time you need to fill up.”

 Since early April, the cost of a barrel of crude oil has risen from approximately $69 to a current rate of between $70 and $73. However, according to the AA’s analysis over 60% of the cost of a litre of petrol consists of taxation, including VAT and excise duty, with taxes making up slightly over 55% of the cost of diesel.

“Ultimately, I think we’re unlikely to see any change in the levels of taxation on both fuels any time soon but Government needs to look at how this excessive level of tax is impacting on those across the country who rely on the private car to commute to and from work,” Faughnan added. “Particularly in rural areas, Ireland’s workforce is still heavily dependent on the private car as a result of a history of under investment in public transport and the current level of tax on fuel only acts to punish people for the failure of the current and previous governments.

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