Fears of petrol price surge as oil reaches two-year high
As well as the climate in oil producing countries, a rise at the pumps here is governed by a number of factors such as the euro/dollar exchange rate and the wholesale price of refined product on the European market.
Ordinarily, a small rise in the cost of a barrel of oil does not have a significant effect on the cost at the pumps.
However, with the prolonged unrest in the Middle East the prices here are likely to soar. Libya accounts for only 2% of the world’s oil supply but Europe takes about 50% of its oil from Libya and will have to source oil from elsewhere and possibly pay more for it.
While petrol companies here have not given any indication as to the likely impact, a group of petrol retailers are already predicting the rise in Brent crude will filter through to British forecourts in the next few weeks, leading to an estimated 5p per litre increase by April 1.
Here, the AA have called on the incoming Government to abolish the increase introduced in the last budget. It has pointed out that the reduced usage of cars when the increase was brought in meant the Government made little money out of it.
AA Roadwatch surveyed 23,000 motorists and, of those, 47% said they will have to reduce their driving due to the fuel costs.
In 2008, the cost of oil reached $150 a barrel. However, at that point the price at the pumps here only peaked briefly at €1.35 per litre before dropping back down to €1.02. At present, even with the cost of oil at well below the 2008 level, new taxes in the interim have put the pump cost at an average of €1.45 per litre.
- January 2007
Unleaded €103.4
Diesel €103.5
- January 2008
Unleaded €118.9
Diesel €119.6
- January 2009
Unleaded €94.6
Diesel €94.4
- January 2010
Unleaded €122.4
Diesel €115
- January 2011
Unleaded €142.6
Diesel €135.2
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