Petrol and diesel at lowest price since September 2021 but expected to rise

New figures from an AA fuel prices survey show diesel prices fell by 9% to €1.51 per litre, compared to last month. Petrol prices also fell 3.6% lower than in March to €1.59 per litre, the lowest since September 2021.

Fuel prices have fallen to the lowest since the start of the war in Ukraine but are likely to rise again as crude oil spiked in recent weeks and reduced rates of excise on petrol and diesel are expected to be restored.

New figures from an AA fuel prices survey show diesel prices fell by 9% to €1.51 per litre, compared to last month. Petrol prices also fell 3.6% lower than in March to €1.59 per litre, the lowest since September 2021.

"We have not seen prices this low for petrol and diesel since September 2021, well before the start of the ongoing conflict in Ukraine, which led to a dramatic increase in fuel prices internationally," said AA Ireland's head of communications, Paddy Comyn.

However, prices are set to jump again as a phased restoration of previously reduced rates of excise on car fuel will take place in three stages over the coming months.

This will lead to an increase of 6c per litre of petrol and 5c per litre of diesel on June 1. On the 1st of September, these rates will increase by 7c for petrol and 5c for diesel.

The Government will fully restore the rates on the October 31 with a final increase of 8c for petrol and 6c for diesel.

“We already know that unless prices fall again, then petrol will be back up to around €1.80 per litre and diesel to €1.76 per litre by the end of October. Which were the same as at the start of the Ukraine conflict,” said Mr Comyn.

A sharp rise in the price of crude oil could also lead to motorists paying more for their petrol by the end of the month.

Just over two weeks ago, Brent crude oil surged by over 5% to about $85 a barrel, putting $100 a barrel back on the horizon, after the group of oil producers known as Opec+ announced a surprise output cut.

It takes at least two weeks for any sustained large increase in global rises in Brent crude to feed down the pipeline into price changes at petrol forecourts.

However, yesterday Brent crude futures shed 35c, or 0.4%, to $84.42 a barrel ahead of another interest rate hike by the US banking regulator.

Meanwhile, EV drivers have paid almost identical amounts this month as electricity prices remain elevated, according to AA figures.