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


More in this Section

Bombardier may sell assets amid C Series crisis

Peugeot to cut 400 jobs in UK

Irish Odeon cinemas firm makes profit of €1.2m

Brexit no deal ‘would hit sterling’


Breaking Stories

Oireachtas 'would be prepared to give Central Bank more powers' to fix tracker scandal: McGrath

Channel 4 relocation outside London 'could have transformative impact'

Snapchat to introduce scripted TV-like programmes

Airbus-Bombardier deal 'will help secure future of the Belfast workforce'

Lifestyle

Remembering the dead: Poignant reason behind Cork’s Zombie Walk

Eight events around Ireland to check out for some frightful fun this Halloween

Massacre at mass on Scariff Island

Ask Audrey: 'It’s like I’m in a horror movie called Revenge of the Norries'

More From The Irish Examiner