24 Nov 2019
Posted by Barry Aldworth 
Despite the increase in Carbon Tax introduced in Budget 2020, a drop in crude oil costs has led to a minor fall in the average cost of fuel in Ireland this month.
According to the AA’s latest index of monthly fuel prices, a litre of petrol now costs 141.6c on average – down almost a cent from an average price of 143.9c last month. Meanwhile, the average cost of a litre of diesel has also fallen within the past month, dropping from 133.7c in October to a current average of 131.2c.
“In mid-September we saw crude oil prices increase to over $70 a barrel in response to the drone attacks in Saudi Arabia and subsequent fears of significant delays in future oil production, meaning that motorists saw a surge at the pumps. However, as Saudi Arabia’s oil production rate returned to near-normal relatively quickly, we’ve seen crude oil prices return to a more typical level meaning that in the past two months we have seen pump prices follow suit,” Conor Faughnan, AA Director of Consumer Affairs stated. “While this is welcome news for motorists and means that, despite the increase in carbon tax, a litre of fuel will cost less on average than it did at the time the increase was announced, the tax increase has still unfairly raised the living costs for many across Ireland who don’t have a viable alternative means of commuting to and from work.”
“In advance of Budget 2020, the AA warned that the planned increase in carbon tax was little more than a government tax grab and would not encourage any change in behaviour. Fuel prices naturally increase and decrease throughout the year and, where you fail to provide a reliable alternative, people will simply accept that at certain times of the year their travelling costs will be greater and will continue to use their car.”
The AA also highlighted that the absence of reliable alternatives has left many motorists more reliant on the private car then they would like – with investment in alternatives much more likely to change behaviour than any tax increase.
According to a recent AA survey of over 5,000 Irish motorists, 47.89% of respondents strongly agreed that a lack of public transport options in their area or an overcrowding of existing services meant they use their car more than that would like to. Meanwhile, a further 21.71% indicated that they somewhat agreed with this statement.
“Since Budget 2020 we’ve seen more announcements about new roads and bypasses than we’ve seen about investment in public transport for rural Ireland and cycling infrastructure. If we are to reduce our reliance on the private car, then this needs to change. Where areas are witnessing significant congestion, we shouldn’t always default to building more road space but ask if investment in public transport and cycling could be a better solution,” Faughnan added. “If you continue to prioritise new roads over investing in alternatives, then even those who want to reduce their car usage will struggle to do so. Moving forward, the taxpayer needs to see the money generated from the increase in carbon tax being properly invested in providing them with carbon-friendly alternatives or many will be forced to continue to commute by car on a daily basis.”
