Punished at the pumps: Varadkar says action will be taken on soaring diesel and petrol prices 

Fuel prices at a Circle K filling station in Dublin. Picture: Colin Keegan/Collins Dublin

The Government will make an intervention on fuel prices before the October Budget, the Tànaiste has said.

With the cost of filling a car set to get even higher — the average price at the pumps now exceeds €1.80 a litre — Leo Varadkar said consumers need further help with the cost of living.

"The war in Ukraine has made it worse and I think it will cause energy prices to go higher and stay higher for longer. We're going to examine ways in which we can respond.

"We're not going to do anything immediately. We want to wait for a European Commission paper on this before we make a decision because we want to make sure that whatever we do ... governments act in concert.

"I think there can be no doubt that it is affecting everyone. Obviously, for motorists seeing the increase in petrol and diesel over the last couple of months, for householders seeing an increase in oil, gas and electricity bills and also for business as well."

A litre of premium petrol has already exceeded €2 in at least one Dublin forecourt and the rest of the country is seeing prices soar.

The cost of a litre of standard unleaded petrol in many parts of Cork yesterday was above €1.80 and approaching €1.90 per litre in many places, while it was also above €1.70 per litre of diesel.

The average litre of petrol cost around 129.9c at the beginning of 2021 and 120.8c for diesel. 

According to CSO figures, the price has increased by 29.5% for petrol and by 32% for diesel in the 12 months to January 2021.

Recent analysis by the AA in mid-February put the average litre of petrol at 177.3c and diesel at 167.7c, meaning it has risen yet further already this year.

This was also the highest figure for both petrol and diesel since the AA began compiling regular figures on their cost in 1991.

Rising fuel costs around the world have been exacerbated again by the surging price of oil due to Russia’s invasion of Ukraine.

Further cost of living pressures

Tánaiste Leo Varadkar told the Dáil last week that the war would likely lead to further cost of living pressures in Ireland as prices rise.

Record prices for fuel are also being recorded in Britain, with industry figures there predicting a “torrid time for motorists” and that “the conflict in Ukraine is only likely to make matters worse”.

Since the AA’s mid-February survey, prices have gone up again in Ireland, according to spokesperson Anna Cullen.

“We predicted [petrol] would reach €2,” she said. “It’s already hit that €1.80 mark. It’s very worrying.

“If the cost of filling your car [was] at €100 per tank, it would be around €2,428 for the average motorist a year. That’s an increase of almost €600 in the last year.” 

Ms Cullen said that every 10c increase at the pump adds €120 to the annual cost of filling your car.

Already in 2022, petrol prices have risen from 170c for petrol and from 160c for diesel, according to AA figures.

It’s crippling for people, especially for those who rely on their cars for basic journeys, or people on lower incomes.

 Ms Cullen said that the tax paid at the petrol pump is “quite high” and was within the Government’s power to address.

“Something needs to be done fairly soon. Prices are going to go higher.” 

While carbon tax on transport fuels is set to rise in October, the tax on home heating fuels is planned for May.

Speaking last week in Berlin, Taoiseach Micheál Martin said the May increases in carbon taxes will still go ahead because they are legislated for and represent only a small portion of the wider energy crisis.

“The carbon taxes are going back to the people in the form of retrofitting grants, farming grants, and they protect people from fuel poverty,” he said.