Slight fall in fuel prices

The average price of petrol and diesel both fell slightly at the pumps in the last month according to the latest survey of prices from AA Ireland.

Petrol now costs an average of 157.4 cent per litre, down 0.7 cent since May. Diesel prices also fell by less than a cent and the national average price is now 148.0.

“We are much happier reporting price drops than price rises.” Says Director of Consumer Affairs Conor Faughnan. “Even so this is only a modest fall reflecting a little more stability in European wholesale prices. Motorists are still struggling with high fuel prices and just because prices are down a little from recent peaks does not make the issue any less urgent.”

Petrol cost €1.62 in April and was as high as €1.70 last September but has fallen back gradually since then.

“We are not expecting too much movement in the coming weeks.” Says Faughnan. “The Euro has weakened a little against the dollar which counts against us and goes some way towards off-setting falls in European prices for refined petrol and diesel. The big problem that we still face is high taxation.”

The AA points out that if fuel taxes were back at 2008 levels then the price of petrol would be €1.34 per litre, diesel €1.25.

“Those are more realistic values but because of the tax increases imposed since 2008 we are now paying about 58 per cent of the pump price for petrol in taxes, and 51 per cent of the diesel price.”

The AA again calls on the government to reduce the level of taxation on fuels which is continuing to be a huge burden on individual motorists and on business.

“It is in effect an anti-stimulus measure.” Says Faughnan. “It pushes up business costs and takes disposable income out of people’s pockets.”

ENDS

Note:  AA Fuel Usage figures: If a car does 12,000 miles per year (19,200 kms) at a fuel consumption rate of 30 miles per gallon (9.42 litres per 100 kms) that car will use 150 litres of fuel per month. At current prices that motorist will