Wholesale electricity prices up 93% as energy costs to rise further next month

According to the CSO, food products also saw a surge in wholesale prices, with dairy products rising by almost 40% year on year

As the EU-wide ban on the importation of Russian oil products comes into effect on February 5th, experts have warned that this is likely to restrict supply even further, putting upward pressure on prices.

Wholesale electricity prices skyrocketed in December, representing a month-on-month increase of over 93%.

Figures released this morning by the Central Statistics Office showed that wholesale electricity prices also increased by over 10% year-on-year, however, energy was not the only commodity to experience significant price hikes.

Food products also saw a surge in wholesale prices, with dairy products rising by almost 40% in December compared with the same month in 2021. Fruit and vegetables also rose by almost 20%, with fish products up by just under 14%.

Overall, the food products, beverages & tobacco index saw an increase of 10.3%.

Domestic producer prices for manufactured goods were on average 8.9% higher in December 2022 compared with a year earlier, while producer prices for exported goods increased by 2.3%.

Non-food products also saw a surge in wholesale prices, with wood products, other non-metallic mineral products, and mining & quarrying rising by 25%, 22% and 11% respectively.

The surge in wholesale prices comes amid warnings that fuel costs could increase even further as soon as next month. As the EU-wide ban on the importation of Russian oil products comes into effect on February 5th, experts have warned that this is likely to restrict supply even further, putting upward pressure on prices.

Additionally, the government's excise duty on fuel will cease in February, putting an end to the reductions on petrol and diesel by 20c and 15c, respectively. 

AA Ireland has called for the excise duty to remain in place to avoid difficulties at fuel stations, with Head of Communications, Paddy Comyn, saying, "Suddenly switching off the excise duty reductions overnight will inevitably lead to anxiety leading up to the end of February, which could lead to tailbacks filling stations or pumps running dry in certain areas.

"A more prudent approach would be to stagger this over two to three months. There remains uncertainty on Russian oil products, particularly diesel, so a staggered reduction in duty could offer a buffer to any potential increases."