Petrol prices increase again as motorists run on empty

The steady increase in petrol prices is set to continue this week with many garages who have already passed the €1.50 mark set to increase their prices yet again.

Despite a fall in world oil prices two major petrol and diesel wholesalers added another 1c to their prices last night.

It means that as filling stations run out of their existing stock and pay a higher price to resupply, they will pass on the increase to motorists.

Many filling stations around Cork broke the 150c mark in the past two days as ongoing instability in Libya and the Middle East lead to rising oil prices in recent weeks.

One petrol station near Dublin Airport was charging 159.9c per litre of petrol yesterday while a filling station in Monaghan had one of the lowest prices at 143.9c.

However, there is some hope that prices may fall again toward the end of the week.

The price of oil on the international trading markets fell sharply yesterday as oil producing countries got ready to boost their output because of the difficulties in Libya. It means motorists may see prices dip at the weekend and into next week.

The Irish Petrol Retailers Association said filling stations were often being blamed for the price hikes when they have little or no control over the prices they charge.

“We understand the public frustration when faced with higher prices, but petrol retailers operate on extremely low margins and merely pass on any increases and decreases based on the wholesale prices that major oil companies charge them,” IPRA spokesperson David Blevings said.

They said that petrol stations take just 3% of the price paid by motorists at the pumps. The oil companies get 36% of the cost, oil wholesalers take 4% while the remaining 57% goes to the Government in VAT and duties.

“The only way forward we believe is for the Government to introduce a fuel stabiliser that would reduce duty as international oil prices increased. Even a token gesture from Government in this difficult economic period would be seen as a positive move by cash strapped consumers,” added Mr Blevings.

His comments were backed up by Fianna Fáil City Councillor Kenneth O’Flynn who called on the incoming Government to take speedy action.

“This is not just detrimental to business in this country, but also to families who are already suffering cuts in social welfare and elsewhere,” he said.

Article courtesy of the Evening Echo newspaper.