Average price of petrol rises 2.5c in a month

FUEL prices are reaching record high levels for Irish consumers as a result of a further increase in the cost of crude oil on international markets and a weakening of the euro against the US dollar.

The latest monthly fuel survey by the Automobile Association shows that the average price of a litre of petrol is now 142.6 cent — an increase of 2.5c in just one month.

The average price of a litre of diesel is also up by 1.9c to 135.2c.

“It is a shocking start to the year for drivers,” said the AA’s director of policy, Conor Faughnan. “This time last year a litre of unleaded was 17.7 cent cheaper than it is today. A litre of diesel was 20 cent cheaper.”

Mr Faughnan said the sharp rise in fuel prices represented a substantial increase in the cost of living for most Irish motorists.

He estimated the owner of a typical family car is spending €315 more per annum (or €26.25 more per month) on fuel than a year ago based on 12,000 miles per year and consumption levels of 30 miles per gallon.

Mr Faughnan criticised the Government’s recent decision to increase the price of petrol by 4c per litre and diesel by 2c in the budget, which he claimed was part of a succession of tax increases on fuel that was a source of great frustration for consumers.

“Two-thirds of the retail price of fuel is now tax,” he observed. The AA has calculated that tax from petrol and diesel contributes €2.6 billion revenue for the Exchequer.

However, the AA advised motorists that they could still save money on fuel by shopping around between retail forecourts.

Mr Faughnan said the AA survey showed prices routinely differed by up to 5c below and above the average cost of a litre of petrol and diesel.

“We have not yet seen the €1.50 mark breached, although we have a few examples of garages charging €1.49 so it is probably not far off. But you do not need to pay that much,” said Mr Faughnan.