Cost of running a car rises €600 as fuel prices soar

THE cost of running a family car in Ireland has jumped by almost 6% over the past year, according to AA Ireland’s annual survey of motoring costs.

A huge rise in the price of petrol and diesel is the major culprit why motoring costs have soared by over €600 since last year.

AA Ireland estimates that the average cost of running a small family car with an engine size of 1251-1500cc is now €11,817 — an increase of €646 on last year.

AA’s director of policy, Conor Faughnan said the cost of motor fuel had risen on average by 12% during the period.

“In June of 2010 petrol cost 133.3 cent per litre but by June of this year that had risen to 151.7 cent,” said Mr Faughnan.

“It is something that motorists are certainly feeling in their pockets,” he added.

However, the AA said other motoring costs had recorded much smaller price increases over the past 12 months.

Car insurance rose by just 1.2% on average, while there are indications that motoring insurance premiums have actually begun to fall in the last six months.

The cost of servicing, parts and repairs has increased by an average of 2.7% — largely in keeping with general inflation levels.

Mr Faughnan pointed out that the European Central Bank’s base interest rate has also increased from 1% to 1.5% which had a knock-on effect on the cost of car finance.

Overall, the price of new cars fell slightly which the AA attributed to strong competition between manufacturers and increased consumer interest due to the Government’s scrappage scheme.

According to the AA, a motorist with a car with average fuel consumption of 30 miles per gallon (9.5 litres per 100km) on annual mileage of 10,000 miles (16,000km) will spend €2,301 on petrol this year compared to €2,000 last year.

While Mr Faughnan said a majority of private cars on Irish roads are still petrol models, there had been a huge switch in favour of diesels among new car-buyers in recent years. Over 70% of new car sales so far in 2011 have been diesel models.

The AA has advised motorists to continue to shop around for lower fuel prices and motor insurance, as well as the nature of their insurance cover in order to lower motoring costs.