AA: End of the road for low fuel prices

AA: End of the road for low fuel prices

The AA is warning motorists that the period of cheap fuel prices has come to an end after both diesel and unleaded fuel costs continued to climb this month.

Growing pump prices are a result of the recent rise in the cost of oil which is now sitting at $47 per barrel, up from $44 last month.

The AA report finds that a monthly average of €4.65 has now been added to the cost of filling up a car that runs on 150 litres of petrol per month.

A typical Irish motorist is now spending around €193 per month.

AA Director of Consumer Affairs Conor Faughnan said: "Much has been said about oil producers appearing to edge closer towards limiting their output and the growth in prices would seem to be reflective of recent headlines.

"Huge trades made on international exchanges are far removed from the consumer. In fact, you can sometimes see price movements even throughout a single day as trading can get spooked in response to headlines

"It settles down on a longer time-line and for now we are only seeing the minor side effects of rumoured oil production limits."

However, the AA believes this, and even currency strength, to be only part of the story of high fuel prices for Irish consumers.

Mr Faughnan said: "The bigger issue is tax, and of your €190 or so monthly fuel bill nearly €130 goes directly to the Government in tax. If oil pursues its current pattern we could see fuel prices continue to accumulate well into 2016.

"We would like to see the new Government remove the austerity taxes slapped on between 2008 and 2012 by their predecessors. This is nothing short of an anti-stimulus measure and is effectively taking money out of the pockets of consumers."


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