Fears of petrol price surge as oil reaches two-year high

AS oil prices hit a two-year high of $119 per barrel due to the chaotic situation in the Middle East, fears continue that the price of fuel for Irish motorists could reach unprecedented levels within weeks.

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.