Fuel prices could drop even further for drivers in the coming weeks — as the price of diesel fell below €1 per litre for the first time since 2009.
The news comes after it was revealed that a service station in Ballina in Mayo had dropped its price to 99c per litre for diesel.
According to the Automobile Association, the average price for diesel now stands at 112.8c per litre, while the average price for petrol is 126.5c per litre.
Earlier this week, the Irish Petrol Retailers Association (IPRA) pointed out that fuel prices have already fallen by over 30% or 50c per litre since the end of 2013.
The IPRA also said there was evidence that the market was now reacting to what Goldman Sachs have been saying for some time — that prices will be “lower for longer”.
Reacting to news that diesel had dipped below €1 per litre, David Blevings of the IPRA said any station selling at this price was getting “next to no margin at all” on its sales. However, he said it was possible that prices could fall even further.
“Will we see another 15c per litre off unleaded? We could see 5c to 10c per litre coming off if the crude oil price continues to fall and that is passed on through to the wholesale market this is good news for consumers and will result in lower fuel costs at the pumps,” he told RTÉ.
Mr Blevings said the fact that so many filling stations had stores attached allowed them to offer lower fuel prices and earn profits through shop sales instead.
“That’s one thing that consumers benefit from in Ireland, that the market is hugely competitive and depending on what your store is, where you decide to take your margin from, the fuel price is pitched accordingly,” he said.
Brian Tuffy of Tuffy’s Gala Garage in Ballina said prices were extremely competitive in the north-west region and that it was possible that prices could fall even further in the coming weeks.
“We could see the price of fuel falling over the last week or so, and rather than bringing it down piecemeal and bit by bit, we decided to reduce the price and give our customers value for money, particularly in January after the Christmas.
“It’s going to come down another few cent I would think, so in anticipation of that we reduced the price,” he said.
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