Petrol prices up 25% in a year 

Motorists queue for fuel at an ESSO petrol station in Kent, England in chaotic scenes as members of the public scramble for fuel due to chronic shortages. Picture dated Friday, October 1, 2021.

Petrol prices are up nearly 25% in Ireland compared to this time last year. 

AA Ireland is reporting fuel prices are rising across the country. 

It started an investigation after chaotic scenes in Britain due to petrol supply shortages. 

The motoring group looked at rising petrol and diesel prices in Ireland amid global concerns of increasing fuel prices. 

While Ireland is unlikely to face the same shortages at fuel pumps that led to dramatic panic buying across the UK, prices are increasing. 

This includes a 24.8% increase in petrol and diesel prices compared to this time last year.

However, AA Ireland has said the country is unlikely to face the same supply issues as the UK.  

“Petrol prices in this country are at an average of 155.9 cents per litre and diesel is at 144.9 cents per litre. 

"Prices have jumped 24.8% since this time last year for petrol and 24.4% for diesel in the same period. 

"This time 12 months ago the average petrol price was 124.9 cents per litre, while diesel was at 116.5,” said Anna Cullen from AA Ireland.

While scenes of panic buying like those in the UK are unlikely, Ireland is experiencing a rise in fuel prices as demand for oil and gas returns to pre-pandemic levels. 

BP said oil consumption fell by a record 9.1 million barrels per day, or 9.3% last year, its lowest level since 2011.

This collapse in oil demand did result in a fall in fuel prices for the consumer but prices are rising again and set to continue to do so as economies rebound from the pandemic. 

"In Ireland, with traffic volumes back above 95% of pre-pandemic levels on most routes, and with winter approaching us, temperatures are set to drop even more. 

"Demand for oil has risen and will continue to rise even more. In the UK, there is the issue of petrol supply shortage, and long queues were witnessed buying fuel amid fears it might run out. 

"This has been labelled as ‘panic buying’. We are assured that the issues facing the UK aren’t a problem for us here in Ireland, so consumers don’t need to worry,” said Ms Cullen.

The Organisation of the Petroleum Exporting Countries (OPEC) meets this week to decide on a production increase in response to fuel demand. 

A decision to do would see the price of oil restored to more regular levels in time.

From there it can take around 15 days for the prices to be reflected in the fuel prices at the petrol pumps.

Ireland is the 14th most expensive country in Europe to buy petrol and 21st in the world. 

Taxes including excise duty are also a significant factor in the price of fuel in Ireland.