Price of filling the car at its highest in 30 years

Fuel prices are close to the highest levels ever recorded.

The price of filling the car is at its highest level since the AA first began regularly surveying petrol and diesel prices in 1991 and is creeping closer to the €2 mark per litre.

On the last day of January, the average retail price of a litre of petrol was 175.5c and 166.1c for diesel.

Two weeks before, an average litre of petrol cost 170.3c and 160.5 for diesel, rising by over 5c for both in a short space of time.

Anna Cullen, from AA Ireland, said the record highs were first reached in November but the latest fuel price rises have eclipsed them again.

“It’s very worrying,” she said, citing the high price of oil globally. “It doesn’t look like they will be going down anytime soon.” 

Rural areas hit hardest

Ms Cullen said the price rises were being felt particularly in rural areas, where public transport options may not be sufficient to get around while lower-income families needing the car to travel will also be feeling the hikes.

According to statistics from the Central Statistics Office, the cost of petrol rose by 31.8% last year and the cost of diesel rose 35.9%. The average litre of petrol cost around 129.9c at the beginning of 2021 and 120.8c for diesel.

The extra cost of filling the car is among the highest price rises in the past year as the soaring cost of living is leaving many feeling the pinch.

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Charities have said that lower-income families are being disproportionately affected by inflation within the Irish economy as the cost of essential goods and services has risen.

The Government has faced calls to do more to support families and households to deal with soaring energy and fuel costs, with the Cabinet set to consider a range of options to ease the pressure. So far, it has included a scheme for €100 off electricity bills and the waiving of leaving cert fees.

Transport commentator Conor Faughnan says the fact fuel prices are so expensive here is a choice of the Irish Government. Picture: Gareth Chaney Collins

Transport commentator Conor Faughnan said that for motorists who find themselves spending more of their income on fuel, the blame doesn’t solely lie with the global fuel prices rising.

“It’s a case of chickens coming home to roost,” he said. “The current price of oil is not unprecedented. In fact, it’s been higher in the past.

“The fact it’s so expensive here is a choice of the Irish Government.” 

According to data from the World Bank, the last time the average barrel of crude oil was this high was 2014. The price had remained consistently higher than 2021 levels between 2010 and 2014.

Mr Faughnan pointed to the tax placed on fuel, including carbon taxes, as contributing to the high cost of fuel here.

According to AA data, 62.77c of the average 175.5c cost of a litre of petrol goes on excise duties which includes carbon tax.

In a bind

Mr Faughnan said that, for many people, their travel requirements won’t change so they must continue to fill their vehicles with fuel even as the cost goes up.

“What that hits is other discretionary spending,” he said. “It might mean the family takeaway night disappears.” 

He added: “Over the past year, from this time 12 months ago, it’s an increase of around 40c a litre. It’s a pretty grim increase to what’s a regular expense.

“That’s having a significant impact.”