Minor Increase At the Pumps As Fuel Prices Continue Upwards Trend

After a brief reprieve from climbing fuel prices to start 2019, motorists have seen the cost of a litre of petrol and diesel rise for the second successive month according to AA Ireland.

The AA’s latest fuel prices survey has found that the cost of a litre of petrol has increased by almost 2c in the past month, increasing from 134.5c to the current average nationwide price of 136.2c. Meanwhile, diesel car owners received slightly worse news as the average price of a litre of diesel has climbed by over 3c to a current level of 133.0c.

“While this latest increase is a little bit of bad news for motorists across the country, it is worth remember that in the second half of 2018 we were seeing average prices of 147.9c and 141.9c for petrol and diesel respectively. Ultimately, as it stands the situation is one which represents a minor improvement on the latter half of 2018, but one which still highlights the effect of punitive taxation on those who rely on the private car to get to work,” Conor Faughnan, AA Director of Consumer Affairs stated.

Among the factors contributing to the increase in pump prices, is a minor surge in the cost of crude oil. Within the past month, the cost of a barrel of crude oil has risen from approximately $62 to a current rate of between $66 and $69. However, according to the AA’s analysis almost two thirds of the cost of a litre of petrol consists of taxation, including VAT and excise duty, with taxes making up slightly over 57% of the cost of diesel.

“We can spend all the time in the world analysis the impact that external factors such as crude oil prices or European wholesale rates have on what we pay at the pump, but the trust is that these factors only account for about 40% of the per litre price,” Faughnan added. The majority of what we pay consists of various taxations, some of which were introduced as temporary measures during the economic downturn and have since remained in place, meaning that the power to do something to make the cost of commuting to work a little more affordable rests in the hands of our government.”

“For the consumer who unfortunately looks unlikely to get any assistance from government any time soon, the advice is to shop around and be on the lookout for potential ways to lower your monthly spend. Breaking the habit of just going to the same garage every time and actually taking a few seconds to compare prices could help you save a small amount on each re-fill which will add up over the course of the year.”