Strength of euro cushions Irish consumer from surge in oil price
The national average price of a litre of petrol has increased to 102.1 cent. The AA had predicted that it would go above 105 cent five weeks ago.
Although the price of oil has remained fairly high, the value of the euro has risen sharply against the dollar.
“That has actually cushioned us against the worst effects of the oil price rise,” said Connor Faughnan of the AA.
In November 2003 a litre of petrol cost 86.4 cent. The price has increased by 18% in the last 12 months.
The price of diesel has risen even more sharply than petrol. A litre of diesel now costs 99.3 cent, on average, up 26% from 78.6 cent 12 months ago.
It now costs around €51 to fill the tank of an average-size family car. “This makes a big difference to the ordinary consumer,” said Mr Faughnan.
“Individual motorists should try to shop around and buy as cheaply as they can, but there is no escaping the rising tide,” he said.
Border counties tended to be more expensive while there was always good price competition in Cork and Kerry. Mr Faughnan said the AA could find no specific reason why prices were better in Cork and Kerry.
“Perhaps it’s the proximity to the Whitegate oil refinery or the presence of low- cost operators but it’s been that way since we started our price survey,” he said.
He described Dublin oil prices as a mixed bag. “There are ludicrously expensive service stations in Dublin but there are very cheap ones too,” he said.
“Always note the prices when driving around and only take your business to the cheapest service station in your area,” he said.
“If everyone started doing that from tomorrow we all get better price competition,” he said.
The AA points out, however, that international factors are only a small part of the oil price story.
“Of the €102.1 cent average price, a whopping 62.9 cent is tax. It is a combination of excise duty and VAT and it raises €2 billion per year in revenue for the Government,” he said.
The AA is calling on Finance Minister Brian Cowen to remove the five-cent per litre excise duty increase by his predecessor last year.
“That works out at 6 cent per litre because there is VAT added on as well,” Mr Faughnan said.
Mr Faughnan added that the Government was getting tax back from a significant number of motorists from Northern Ireland who were crossing the Border to buy fuel.
An international fuel- price comparison published last month showed that fuel prices in the Republic were around 25% cheaper than in the North.
National average price of a litre of petrol is €102.1 cent.
Average price of a litre of diesel is 99.3 cent.
Cost of filling the tank (around 50 litres) of an average-size family car has increased from €43.20 last year to €51.05.
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