AA Ireland

Fuel prices remain stable despite soaring oil costs

Leitrim Observer Reporter

Reporter:

Leitrim Observer Reporter

Fuel prices drop for fourth month in a row

Fuel prices are stable according to AA Ireland.

In welcome news for Irish motorists, petrol and diesel costs have remained largely unchanged month-on-month despite significant increases in crude oil costs.

According to the latest monthly AA Fuel Prices survey a litre of petrol costs on average 138.2c across Ireland, a drop of 0.1c from December 2017 prices. Meanwhile, diesel owners can no expect to pay 127.3c per litre on average, up slightly from a price of 127.1c last month.

“While it’s certainly welcome that prices haven’t increased significant in the past month, it has to be noted that both petrol and diesel ended 2017 at their highest level since August 2015, placing further strain on commuters across the country. At best we can celebrate that the situation didn’t get any worse, but unfortunately for motorists it hasn’t gotten any better either,” Conor Faughnan, AA Director of Consumer Affairs stated. “It’s impossible to know what the long-term future will hold for petrol prices, but the continued rise of the cost of a barrel of crude oil is a worrying sign for what the future may hold for pump prices.”

A barrel of crude oil currently costs just under $70, an increase of almost $6 per barrel since mid-December. Earlier this month, Brent Crude Oil prices peaked at over $70 a barrel before dropping slightly in recent days.

“We know that oil prices are one of the key factors in dictating what motorists pay at the pump, along with European wholesale prices and the Dollar-to-Euro exchange rate. Thankfully the strength of the Euro against the Dollar has helped ease some of the effect rising crude oil prices have on the cost of petrol and diesel, but we can’t count on this forever,” Faughnan added. “In the longer-term we will have to look closer to home for a solution to rising commuter costs and particularly at the excessive taxes we place on both fuels.  While motoring’s future is going to be electric, until we get to that point we have to ensure people can afford to commute to work, particularly in more rural areas where public transport options may not exist.”

According to the AA, an average motorists who drives 12,000 miles per year (19,200 km) at a fuel consumption rate of 30 miles per gallon (9.42 litres per 100 km) will use 150 litres of fuel per month. At current prices that motorist will pay this €207.30 per month for petrol of which €129.91 is tax. Meanwhile, a motorist driving a diesel powered vehicle will spend €190.95 per month on fuel, of which €110.54 is tax.