Petrol and diesel could pass €2 per litre as fuel prices to rise from midnight

With excise duty cuts due to be fully restored, Blake Boland of the AA warns that low global supply could raise prices for petrol and diesel above €2

Following the September increases, the price of petrol will increase again on October 31st by 8c, with the price of diesel rising by a further 6c.

Motorists are preparing for an expensive winter as the government moves to fully reverse excise duty cuts on fuel from last year despite falling global supply.

From midnight, petrol and diesel will rise by 7c and 5c respectively as reduced rates  - introduced to help consumers with soaring costs - are reversed. 

Implemented at the beginning of 2022, the cuts totalled 21c per litre being taken off the price of petrol, with a 16c reduction on diesel. 

As part of a staggered restoration, tomorrow's price increases will be the second of three phases following a previous hike in June, with the third and final restoration taking place in October.

Following the September increases, the price of petrol will increase again on October 31st by 8c, with the price of diesel rising by a further 6c.

The average price of petrol currently stands around €1.73, with diesel averaging €1.68, however, speaking to the Irish Examiner, Blake Boland of the AA warned that once prices are fully restored at the end of October, fuel costs will likely exceed €1.90.

That is also not factoring in low inventory and soaring prices globally, with declining volumes from Russia and the Middle East also likely to put further upward pressure on Irish fuel prices.

"We don't know yet if it's going to be a warm or cold winter, but after October, it is possible we could see fuel prices exceeding €2 once again," said Mr Boland.

"While prices have remained steady throughout the summer, there is a lot more uncertainty going into the next few months. Prices have been creeping up and as supply is reduced, this could continue into the winter."

Fuel increases are the latest blow to Irish consumers and follow price hikes impacting everything from food, energy and insurance. Just this week, VHI announced a significant average increase of 7% in premium prices following an initial hike just six months ago. 

Similarly, Irish Life and Laya Healthcare have also announced notable hikes which could see many families paying hundreds more in annual insurance premiums.

In addition, the Central Statistics Office just this week reported an unexpected increase in Irish headline inflation, with prices rising by 4.9% on an annual basis according to the Harmonised Index of Consumer Prices.

Up from 4.6% in the previous month, the unforeseen increase was attributed to rising transport and energy costs, with the rising cost of fuel likely to exacerbate consumer prices even further into the winter.