Petrol and diesel prices fall as drivers urged to shop around

Petrol prices have hit their lowest point for 16 months, which should please motorists.

The latest monthly fuel prices survey conducted by AA found that the average cost of a litre of petrol is now 132.9c. It is the lowest price recorded since August 2017, when a litre cost an average of 132.4c.

A litre of diesel currently sets customers back an average of 127.9c, the lowest price recorded by the AA since April of last year. It is a drop of 4c from last month.

The decline has been attributed to a significant drop in the cost of crude oil. Having floated between $75 and $85 per barrel for much of 2018, crude oil has largely remained between $55 and $65 since December.

“2018 felt like a year of unrelenting surges when it came to pump prices, so it’s certainly reassuring for motorists to see prices trending in the opposite direction to start the new year,” said Conor Faughnan, AA director of consumer affairs.

“However, it’s important to remember that we are not seeing this drop as the result of an act of kindness from government or an easing of taxes, but as a result of international factors, which are always vulnerable to reversing in the opposite direction at any instance.

“As with any purchase, the most important thing for those who are trying to cut costs at this time of year is to shop around when buying petrol or diesel.

“Simply put, it’s always better to be loyal to your own pocket, instead of being loyal to any particular garage.”

AA warned that motorists are still paying more than they should be for their fuel, though.

Currently, the AA estimates that 64.42% of the cost of each litre of petrol sold in Ireland is made up of various taxes. Meanwhile, 57.71% of diesel’s pump price comes from taxation.

“For many people in Ireland, particularly those living in rural areas, the car is their only means of reliable transport and, as a result, crucial to their ability to get to work and continue to contribute to the Irish economy. The current levels of taxation only serve to punish these people for the failure of the current government, and their predecessors, to improve public transport options across the country”.

“At the very least, if government persists in maintaining such a high level of taxation, then that money needs to be used wisely and invested in providing people across Ireland with reliable public transport options, so that they have legitimate alternatives, as opposed to simply forcing them into a corner and punishing them when they try to escape by their sole reliable transport option.”