13 Jan 2019
Posted by Barry Aldworth 
- Motorists received some positive news to start the year, as the AA’s monthly fuel prices survey found that the average cost of a litre of petrol currently sits at 132.9c – the lowest level since August 2017.
- Diesel currently costing an average of 127.9c per litre, the lowest price recorded by the AA since April of last year.
- Drop in crude oil prices main driver behind the drop in fuel costs.
The start of a new year brought some positive news for Irish motorists, as fuel prices trended downwards for the second successive month, following a 2018 which had been largely dominated by high fuel costs.
According to the AA’s latest monthly fuel prices survey, a litre of petrol currently costs 132.9c on average – down from 136.9c in December 2018. Meanwhile, diesel car owners can expect to pay 127.9c per litre on average – a drop of 4c from the previous month. The latest decrease in pump prices means that the cost of a litre of petrol is now at its lowest since August 2017, while diesel prices are at the lowest level seen since April 2018.
“2018 felt like a year of unrelenting surges when it came to pump prices, so it’s certainly reassuring for motorists to see prices trending in the opposite direction to start the New Year,” Conor Faughnan, AA Director of Consumer Affairs stated. “However it’s important to remember that we are not seeing this drop as the result of an act of kindness from government or an easing of taxes, but as a result of international factors which are always vulnerable to reversing in the opposite direction at any instance.”
“As with any purchase, the most important thing for those who are trying to cut costs at this time of year is to shop around when buying petrol or diesel and, if you are an AA customer, then consider using our Fuel Card or App offer to save even more on your fuel. Simply put, it’s always better to be loyal to your own pocket instead of being loyal to any particular garage.”
Crude Oil Drop Main Reason for Change
Among the main drivers for the change in pump prices has been a significant reduction in the cost of crude oil. Having floated between $75 and $85 per barrel for much of 2018, crude oil has largely remained at a cost of between $55 and $65 since December of last year. However, the AA has highlighted that the excessive tax placed on both petrol and diesel means motorists are still paying more than they should be for their fuel.
Currently, the AA estimates that 64.42% of the cost of each litre of petrol sold in Ireland is made up of various taxes. Meanwhile, 57.71% of diesel’s pump price comes from government taxation.
“For many people in Ireland, particularly those living in rural areas, the car is their only means of reliable transport and as a result crucial to their ability to get to work and continue to contribute to the Irish economy. The current levels of taxation only serve to punish these people for the failure of the current governments and their predecessors to improve public transport options across the country,” Faughnan added.
“At the very least, if government persists on maintaining such a high level of taxation, then that money needs to be used wisely and invested in providing people across Ireland with reliable public transport options so that they have legitimate alternatives as opposed to simply forcing them into a corner and punishing them when they try to escape by their sole reliable transport option.”
