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FUEL PRICES STAY HIGH, DIESEL RISES SHARPLY

date-icon 19 Oct 2010  author-icon Posted by Miriam O'Neill


The price of a litre of petrol is now 131.0 cents on average, just barely down (0.2 cent) on the figure for September, while diesel has risen by 0.9 cent to an average of 124.8 cent according to the latest monthly fuel price survey by AA Ireland.

“It has been a grim year for fuel prices, and that continues.” Says Director of Policy Conor Faughnan. “Petrol now costs motorists 13.5% more than it did last October. Diesel is 18.5% more expensive than it was this time last year.”

Oil prices are up in the last month, from $75 to between $82 and $83, but that negative effect is off set against the fact that the Euro continues to rise against the US dollar. The net practical effect is that prices at Irish pumps have not moved much in the last month.

“Oil and Euros only explain a small part of the story.” Says Faughnan. “Two thirds of what we spend on fuel goes directly to the government in taxes. When you spend €20 on petrol or diesel, around €14 of that is made up of excise duty, an oil levy, the inaccurately-named Carbon Tax and VAT on top of everything. The actual price is only a third of what we pay.”

With the forthcoming Budget in everyone’s eyes, the AA is warning that adding yet again to fuel prices will not be the easy revenue-raiser for government that it appears. Between excise duty and carbon tax increases, as much as 15 cent per litre has been added to Irish retail fuel prices in the last 24 months.*

“A key problem with this is that where the exchequer used to get a bonus in terms of traffic from Northern Ireland filling up in the Republic, recent tax rises have eroded that advantage. More tax rises will erode it still further or even start to send traffic in the other direction. In any case you cannot simply keep adding to fuel costs, which affect every family and every business in the country, without expecting to have a negative effect on the economy at a time when we badly need growth.”

Keep your car in good order to reduce fuel usage

“A lot of the fuel that motorists use is wasted.” Says Faughnan. “A small bit of care and a small bit of car maintenance could save you a lot of money.”

The AA estimates that normal drivers can cut fuel consumption by anywhere between 10% and 30% by applying the tips below:

  • Keep your car serviced regularly – a badly maintained car wastes fuel and money. AA now offers full car servicing at your own door or convenient location. See here.
  • Check the level of air in the tyres. Uneven tyre inflation will worsen wear and tear on the tyres and will also worsen fuel consumption.
  • Slow down – the simplest and most effective tip of all. Reduced speed means reduced fuel usage and you will feel the effect directly in your wallet.
  • Lighten your load – check if the car is carrying unnecessary weight. Items like golf clubs, tool kits, and all sorts of paraphernalia are often left in the car semi-permanently, and all of that weight costs fuel to carry around.
  • Roof racks and boxes add seriously to aerodynamic drag and make a huge difference to fuel consumption. Take them off unless you are using them.
  • Get back to nature – turn off the air conditioning and use the windows instead. Granted as we come into winter drivers will need their heaters, but use them sparingly because they are one of the most fuel-intensive features on a modern car.
  • Drive smoothly – accelerate & brake smoothly, and anticipate what lies ahead. A green light in the distance is likely to be red when you reach it, so ease off the accelerator and cruise gently.

*Note   In the emergency budget of October 2008, 8 cent per litre was added to excise duty on Petrol. The following April, 5 cent was added to diesel. In December of 2009, Carbon Tax of 4.2 cent and 4.9 per litre was added to the two fuels respectively. Vat at 21% is added.

ENDS

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Written by Miriam O'Neill


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10 Comments

Aileen murphy
8 years ago



I cannot understand the cost of alitre of petrol before the budget was on average €1.30.9 it now costs awhopping €140.9 a litre can someone explain this to me it went up by 4 cent in the budget that shold be on average €1.35 a litre???????? Can we the driver do anything about this total rip off please

ray
8 years ago



I bought diesel for €1.229 on the monday of budget week by friday this was €1.339 only .02c went on in the budget !!!!!!!!!!

Jonathon
8 years ago



Petrol now costs a staggering 1.45 per litre at Topaz exit 7 on the Naas Rd..

Does it really make much of a difference to “shop around” when it nearly costs the same no matter where you go?

Linda
8 years ago



I agree but can’t explane. I feel the same and would like someone to explane it to me too!!!!! If you do find out if there is anything we can do as drivers please let me know

Sharon Leahy
8 years ago



I agree with Aileen…it went up the 4 cent initially and now in my local petrol station it is 141 per litre. it really does feel like a rip off.

fionnuala Murphy
8 years ago



Hi Conor. I just want to say I’m disgusted with the much too high prices for petrol. It seems to have gone from about 130.9 to 142.9 which is what I paid in Maxol (Ardiffs) in Leixlip yesterday. Rip off republic. Thanks for your tips and I’ll deffinately be slowing down and taking your advice to conserve. God help us all this winter.

Joe Gleeson
8 years ago



Aileen the 4 cent exise increase has VAT added to it at 21%. This then becomes a 5 cent increase. Cost of Fuwl 48 c, duty/carbon levy/tax 60, retail costs/profit 10, VAT 25 c , Total 142.9. I think the price of petrol has also increased a bit (the dollar is stronger). In my area petrol was available pre budget at 132.9 cpl (cent per litre) , it’s now 142.9 cpl at the same garage.

PMadden
8 years ago



Also turn off your foglights when its not foggy. Rules of the road state that when visibility is down to 50m, that is the time to turn them on. They burn nearly as much energy from the engine as the air-conditioning.

thefurryman
8 years ago



Advice on how to save on petrol & diesel? Buy a Prius!!!

thefurryman
8 years ago



or borrow the rubberbandits’ horse!



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