Petrol and diesel rise to highest for 18 months

Fuel is costing Irish motorists more than it has in 18 months even as crude oil prices continue to fall.

Despite crude oil prices having fallen sharply in recent weeks, a litre of petrol cost €1.38 on average, while diesel costs €1.27, according to the latest monthly survey from AA Ireland.

Fuel costs have now reached their highest level since August 2015 and mark the sixth successive month that costs for motorists have risen. It is generally accepted it takes a number of weeks before motorists see fuel costs fall following a drop in the price of oil. AA director of consumer affairs Conor Faughnan said taxes on fuel here were a major contributory factor to higher prices, not just oil prices.

“While it’s easy to say that the factors which cause these increases are outside of our control as a country, this simply isn’t the case. The majority of what we pay at the pump is made up of various taxes placed on petrol and diesel and the extent to which we tax fuel spend is something we have direct say over,” he said.

The AA said 86 cent of the total pump price for a litre of petrol consisted of various taxes including Vat and excise. Mr Faughnan called on the Government to “reassess the extent” of taxing fuel.

Crude oil prices fell as US drilling continues to climb and Libyan crude ports prepare to reopen, undermining the potential for Opec output curbs to rebalance the market, even if extended into the second half of the year.

US oil this month dipped below $50 a barrel for the first time in 2017 as near-record US stockpiles and rising output weighed on the production reductions by Opec and its allies. US benchmark West Texas Intermediate fell more than 1% yesterday.

Additional reporting Bloomberg


© Irish Examiner Ltd. All rights reserved

Email Updates

Receive our lunchtime briefing straight to your inbox

More in this Section

Canadian bank to expand Dublin operations

Confidence at its strongest since 2015

Kenmare back in profit as prices rise

Smurfit Kappa purchase extends Russian presence


Breaking Stories

Wow Air announce four new US destinations; flights from Dublin start at €129.99

Samsung Galaxy Note 8 smartphone to be revealed

Just one in 10 have 'dream job', survey finds

LATEST: Leslie Buckley re-elected INM chairman; CEO abstains from vote

Lifestyle

GameTech: Uncharted territory looks very familiar

Detroit's racist themes are sadly relevant to this day

#Hashtag10: Important Irish hashtags of the last 10 years

Friendship is taken as read when you're part of a book club

More From The Irish Examiner