Motorists warned of rising petrol prices

DESPITE a continued fall in the price of crude oil, motorists are being warned to expect a continued “slow increase” in the price of fuel because of fluctuating currency values, as well as the recent introduction of a carbon tax.

Petrol is now averaging at nearly €1.28 a litre, up 24c from last year, while diesel prices are also steadily rising and now average almost €1.18 a litre.

Industry experts say that despite the low cost of a barrel of oil now compared to recent years, factors outside of the control of retailers and consumers are steadily pushing up prices.

Irish motorists have also been urged to shop around for best value.

According to the website www.pumps.ie. for example, petrol at Applegreen station on Dublin’s Ballinteer Avenue was yesterday valued at 122.9c a litre while at the Esso station on the Swords Road, near Dublin Airport, it was priced at 139.9c.

According to the website, the Esso station on Cork’s Ballyhooly Road is priced at 125.9c a litre, while the price at the Topaz station in Fermoy on the Dublin Road is 133.4c a litre.

Reacting yesterday, the Automobile Association’s Conor Faughnan said it was certain fuel prices would not come down over the next month and if anything they could keep rising.

The motoring chief blamed the “unusual” fuel cost increases in recent months on a number of factors including the fall in the price of the euro against the dollar, the slight increase in refined fuel costs from wholesalers, the rise in the cost of oil and the new Irish carbon tax.

“We are definitely going to continue to get shocks and price fluctuations. But this is occupying minds around Europe, not just Ireland. The present price increase does seem irrational but it could be the net effect of a number of things.”

The addition of 5c for petrol and 4c for diesel from the carbon tax in the budget, coupled with the cost of a barrel of oil going from $33 to $80 in just over a year led to direct fuel price hikes, the AA chief said.

David Blevins, of the Irish Petrol Retailers Association, said this week that retailers have no control over the increase in wholesalers’ price.

He said retailers were actually taking a small percentage from fuel costs.

“Some of our retailers are seeing sales down by up to a third because of the recessionary pressure on consumers.”