Petrol and diesel prices take a slight dip, however further increases expected

Following record highs in May, the pump prices of both petrol and diesel have dropped for a second consecutive month, albeit marginally.  Petrol fell by 2 cents to an average of 149.3 cents per liter while diesel dropped by 1.7 cents month on month to an average of 141.1 cents.  This minor reprieve however, is expected to be short lived as retailers strive to reconcile forecourt prices against the cost of crude oil globally.

“While a price drop is welcome, activity within the global markets surrounding the price of a barrel of oil would suggest that it’s to be a short lived one.”  Says Miriam O’ Neill, AA Ireland Spokesperson.  “Global demand for oil is at its highest point since the beginning of 2011.  Add to this mix the uncertainty surrounding the euro and we’re likely to see quite a bit of volatility pricewise over the weeks to come.”

For petrol users, the current average price means that the cost of a month’s fuel for a typical motorist is now €223.95 (based on 12,000 miles per year at a fuel economy rate of 30 miles per gallon, typical for a mixture of urban and rural driving).

The AA reiterates its message to diesel users to purchase their fuel from reputable garages and steer clear of suspect providers who may be offering discounted diesel. 

“Against the back drop of recession and price hikes, it’s apparent that illicit diesel is becoming more readily available.” Says O’ Neill.  “But however painful it is to fork out 141.1 cent per liter or more, the knowing purchase of laundered diesel is a serious offense that can see a fine of up €5,000 imposed.  The fuel’s lubricant properties can also be reduced which is bad news for your engine.” 

The AA is asking its Members and all motorists to share their concerns about prices and report any issues they come across via its website blog section, http://blog.aaireland.ie/

Note 2: The AA’s Fuel Saving Tips.

  • Buy fuel in units of litres, not euros. This makes it obvious where you get the best value
  • Shop around: don’t always use the same garage out of habit
  • Drive smoothly and slowly; a harsh driving style burns more fuel
  • At this time of year the heaters are in constant use. This is hard to avoid but try to take it easy: Air conditioners can add up to 10% to fuel usage.
  • Don’t use the air conditioning all the time: once the air conditioning has heated the inside of the car, you may be able to turn it down or off.

Full details of the AA fuel price survey for July along with previous months for comparison are available on the Association’s website at http://www.aaireland.ie/AA/Motoring-advice/Petrol-Prices.aspx