Petrol and diesel prices hit 30-year high

Prices at the pumps are the highest they have been for 30 years.

Petrol and diesel prices are at 30-year record highs in Ireland, data from AA Ireland reveals.

Experts say it's time to ease the transition to electric vehicles (EVs) with better incentives. AA Ireland said the average price for unleaded petrol stands at 172.6 cent per litre across the Republic, while the average price of diesel is 163.3 cent, the highest since the motoring lobby started recording the figures in 1991.

Compared to the same period last year, petrol is up by 27% and diesel fuel by 28%, AA Ireland said.

Added to the spiralling cost of fuel is the pollution from fossil fuel-powered vehicles, which environmental and health experts say are a major factor in Ireland's emissions, as well as contributing to needless respiratory-related deaths every year.

AA Ireland's Paddy Comyn said the record costs would be of particular hardship to rural and lower-income families. "It is very worrying for everyone, but especially lower-income families in rural areas who are unsure whether they will be able to afford fuel for their cars, or even heat their homes," Mr Comyn said.

SIMI reports that there has been a year-on-year growth in the sales of both Electric and Plug-in Electric Hybrid Vehicles.

AA Ireland said that the sharp drop in oil production during the Covid-19 pandemic worldwide has still not entirely recovered, with the price of a barrel topping $85.

While it has come down to around $80 a barrel, Ireland has to wait for a couple of weeks for the price drop to make a difference at the pumps, while carbon taxes and other levies make up around two thirds of the overall price, it says.

The figures are revealed as Ireland's climate action plan aims to reduce journeys in cars by around 500,000 kilometres over the coming decade, as well as having one million EVs on the road.

However, Ireland has little chance of having one million EVs on the road unless supports and incentives are increased substantially, according to EV expert Tom Spencer.

The editor of consumer information website IrishEVs.com said that recent Society of the Irish Motor Industry (SIMI) data shows that there is a growing appetite for electric vehicles, with significant year-on-year growth in new car sales.

"However, it also drives home the need to incentivise second-hand EV sales, increase second-hand imports, and to bolster the incentives that are already available, as they simply aren't enough to make EVs affordable to everyone who wants them — and this is perpetuating the sales of diesel and petrol vehicles," Mr Spencer said.

A great example of this is that the EV grant for taxis recently hit their budget limit, and there is a worrying lack of clarity and funds to support battery EV adoption among taxi drivers going forward. 

"They have been quick to realise the benefits of lower running costs, lower maintenance needs, and therefore higher profit margins. However, it is not a lack of desire that is limiting battery EV sales in Ireland, but a lack of affordability and funding for the average person.

"If the Government is serious about hitting its one million EVs by 2030 target, this is where it needs to step up," he said.

SIMI data for October showed that there were 8,342 new electric cars registered in the year to date in comparison to 3,867 on the same period in 2020, or an increase of almost 116%.

The data show that diesel now accounts for around 34% of new cars, petrol 32%, hybrid 16%, electric 8%, and plug-in hybrid 7%.