Fuel prices hit highest levels so far this year

As excise duty cuts are phased out, AA Ireland reports that petrol now costs €1.81 a litre on average, while diesel costs €1.78

The first excise duty increase came in on April 1. It added 4c to the cost of a litre of petrol and 3c to a litre of diesel. Stock picture: Rui Vieira/PA

Fuel prices in April have hit their highest levels so far this year as the temporary cuts in excise duties begin to be phased out, AA Ireland has found.

Temporary reductions in excise duties were initially introduced in August 2022 in response to the surging fuel and energy costs following the outbreak of war in Ukraine.

They had been extended through 2023 but during last year’s budget, the Government decided that the cuts would be phased out.

The first excise duty increase came in on April 1. It added 4c to the cost of a litre of petrol and 3c to a litre of diesel.

According to AA Ireland’s latest monthly fuel price survey, the average cost of petrol now stands at €1.81 per litre while diesel now costs €1.78 per litre — an increase of 13c and 9c respectively since January.

Before this latest increase, prices were actually on the way down with a decrease recorded in March compared to the previous month.

Head of marketing for AA Ireland Jennifer Kilduff said the Government will fully restore the excise duty rates on August 1 with a final increase of 4c on petrol and 3c on diesel.

“A carbon tax is also expected in October so we expect prices at the pump to increase further later in the year as a result,” she said.

AA Ireland also found that the cost of running an electric car during April remains relatively steady noting a marginal increase of €1 per year. It estimates that electric car owners can expect to pay circa €926 per year to cover the national average of 17,000km per year.

Ms Kilduff said whether drivers have an electric or internal combustion engine car, they should review their driving habits, reduce speed as well as regularly maintain their car in order to save on fuel.