Fuel prices tumble, but taxes don’t

The following text comes from AA Ireland.  For any enquiries or for verification contact Conor Faughnan, 01 6179440 or 087 2530495

16^th January 2015

The average price of a litre of petrol is now 131.6 cent, a fall of 10.8 cent since December and the 6^th straight month of falling prices according to the latest national fuel price survey from the AA. Diesel prices also fell sharply, down 9.7 cent in the month to an average of 124.3 cent.

“Prices are falling sharply in response to the collapse in world oil prices and we are certainly feeling it in our pockets which is a very welcome present for January,” says Director of Consumer Affairs Conor Faughnan.  “In July petrol cost 157.4, nearly 26 cent per litre more expensive. Given that a motorist will typically use 150 litres of fuel in a month that is a big saving.”

While welcoming the drop the AA points out that Irish taxes remain extraordinarily high. There have been 5 separate tax increases on both petrol and diesel since the emergency budget of October 2008 which between them added approximately 23 cents per litre to the retail price.

Motorists concerned about ‘stretched’ fuel

Despite combative measures by An Garda and Revenue such as random spot checks in worst affected counties, the AA advises motorists to be wary of garages who are selling petrol that is notably cheaper than national average prices.

Adulterated Petrol has become a more acute problem in the West and border regions and this is reflected in a snap check survey the AA conducted among motorists late last year.  Across a sample of close to 10,000 Irish motorists, awareness of the criminal activity referred to as Petrol Stretching was highest among those living in Connacht the AA reports.  83% living in the province compared to 63% in Munster and 64% in Leinster respectively said they are aware of the practice.

Furthermore, it was found that the highest percentage of drivers in Connacht, 5%, have had their car damaged by either stretched petrol or laundered diesel in the past.  This figure is higher again across the border counties the AA shares.  Of the Monaghan based drivers polled, 1 in 10 said they found themselves at the receiving end of doctored fuel.  The same was also true of 8% of the Cavan drivers and 7% of the Louth drivers who engaged with the AA on the topic.

“While prices are down, it’s a good idea to do a bit of price benchmarking in your local area and take care where you source your fuel.  If you have suspicions about a garage report it to Revenue or let us know here at the AA and we’ll pass on the relevant information,” says Faughnan.

Note: – If a car does 12,000 miles per year and gets 30 miles per gallon (19,200 kilometres at 9.42 litres per 100kms) it will therefore use 150 litres of petrol per month. In January 2014 that month’s supply would have cost 152.9 cent per litre x 150 which is €229.35. The price per litre now is €197.40 which is a difference of €31.95.

For diesel, in Jan 2014 the monthly bill was 147.6 x 150 = €221.40 compared to 124.3 x 150 = €186.45 today, a difference of €34.95. Although diesel is much more popular than petrol for new cars and has been for a few years now, the majority of cars out there are still petrol (although the gap is narrowing)

ENDS

Notes to the editor;