Petrol and Diesel prices have surged in the last month, according to AA Ireland’s Fuel Price Survey. The national average for Petrol now stands at €1.85, up from €1.70 in August. This represents an increase of 9% month on month. Diesel has seen an even more dramatic rise to €1.85 per litre, up from €1.64 in August. This represents an increase of 13%.
The rise in wholesale costs of Petrol and Diesel has been exacerbated by another round of Fuel Excise Duty restorations at the start of the month. The government added 7c to a litre of Petrol, and 5c to a litre of Diesel.
The rise in wholesale costs of Petrol and Diesel can be largely attributed to announcements from OPEC countries that production would be limited. Saudi Arabia intends to continue their reduction in output. Russia has signalled its intention to reduce output also. This gets factored into markets, with a corresponding rise in prices.
There is little good news on the horizon for motorists in Ireland. Brent Crude has hit $96 per barrel, putting upward pressure on prices. As we head into winter, demand may increase. We are also facing the final round of Excise Duty restorations by the government at the end of October. The possibility of Petrol and Diesel hitting €2 per litre at the pumps in the coming months is an ever more real prospect. However, there is mounting pressure on the government to take measures to prevent this. All eyes will be on the government to see what approach is taken in the upcoming budget and the final round of Excise Duty restorations.
Blake Boland – Head of Communications – AA Ireland