Highest fuel prices for almost 18 months - and it could get worse

Motorists have been hit with the single largest monthly fuel increase since March 2015 as prices climb to the highest seen in almost 18 months — with warnings it will probably get worse.

According to the latest AA Fuel Price Index, 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 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 rose for the fourth successive month.

Conor Faughnan, director of consumer affairs at AA Ireland, said: “While motorists were perhaps bracing themselves for an increase in fuel costs early in 2017 as oil prices have steadily risen in recent months, the latest price rise represents the largest single month increase in prices since March 2015.”

He warned that it could get worse in the coming months.

He said: “While it’s impossible to know what the long-term future holds when it comes to fuel prices, currently all the factors which inform prices are trending in the wrong direction for motorists.”

Fuel taxes introduced in response to the recession between 2008 and 2012 as emergency measures had to now be reviewed by the Government as it was that, rather than oil prices, influencing the pump, he added.

“We have little or no influence over the international events that affect fuel prices. But we do control Irish taxation and that is actually where the real damage is done — 63% of the price of petrol is tax, and 58% for diesel.  It has been excessive since the emergency budget of October 2008 and despite the end of the crisis period, the taxes remain,” he said.

Over 85c of the per litre petrol price is made up of taxes, with tax accounting for 73c of diesel pump prices.

Approximately 20c and 18c of the taxes on petrol and diesel respectively consists of five separate tax increases introduced between 2008 and 2012.