Motorists are paying a heavy price as fuel prices keep on rising

MANY people fear the monthly announcements from the European Central Bank about interest rate policy.

A hike in interest rates can add tens or, in some cases, even hundreds of euro to the monthly cost of paying a mortgage. Thankfully interest rates have remained remarkably stable — and relatively low for most, especially those on tracker mortgages — over the last couple of years. But the relief for many has been limited, especially those who need their cars to travel long distances from those houses to their places of work. The price of fuel has become a major drain on the finances of many families.

The Automobile Association (AA) has calculated that if someone was paying €142 a month for petrol or diesel in Jan 2009 that they would now be paying €300 per month for the same quantity of fuel to run their car. Back in Jan 2009 the average price on forecourts for a litre of petrol was estimated by surveys at 95 cent a litre. Since then it has gone up to anywhere between €1.60 and €1.70 (and sometimes more) depending on where people buy their fill.