Drivers save €5.70 a month as fuel prices drop further

Average fuel prices have fallen for the third month in a row with drivers saving an average of €5.70 a month to fill up compared to July, according to the AA.

It’s survey of national prices found a litre of petrol now costs an average of 127.5c, down 3.8c. Diesel prices have dropped by 2.3c.

AA said the falling pump prices are partly the result of a recent drop in the cost of oil, which now sits at €45.54 compared to a high of €49 in mid-July.

“We are always pleased to see the price come down as it affects all of us,” said Conor Faughnan’s AA’s director of consumer affairs.

“It has been an up-and-down year for fuel but the last few months have seen it move in the right direction.”

However, the AA said the bigger problem is the amount of tax being charged.

“A litre of petrol actually costs about 40 cents. Everything else is tax,” said Mr Faughnan.

Of the petrol price per litre, 58.771c is made up of excise and 23.84c is VAT. For diesel the amounts are 47.902c and 21.37c. The AA said the retailer margin is 4c and the wholesaler margin is 8c.

The AA report finds that drivers operating a car which uses 150 litres of petrol per month can now expect to save an average of €5.70 compared to their spend in July.

A typical motorist is now spending about €191.25 per month on fuel.