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Fuel prices - Will the reduction in excise duty be enough to help motorists? Fuel prices - Will the reduction in excise duty be enough to help motorists?

Cost of motoring

Fuel prices - Will the reduction in excise duty be enough to help motorists?

Published 9th March 2022Read Time 3 min

The Automobile Association welcomes the news that excise duty on petrol and diesel is to be reduced, but the organisation also warns that this won’t be enough to help motorists avoid record petrol and diesel prices. 

Petrol and diesel prices in Ireland are at the highest level on record, at an average just short of €2 per litre.

In March 2021, prices stood at 138.9 cents per litre for petrol and 129.8 cents per litre for diesel. That’s an average increase of 44% for petrol in the past year, and a 54% increase for diesel. 

Recent AA Ireland figures show that the average motorist in a petrol car would spend almost €2,500 per year to run their car at current fuel prices. That’s around €1,000 more than in 2020 (54% increase). 

The average price of petrol has increased by over 20 cents in the past 3 weeks alone. The Government’s cut in duty by 20 cents per litre on petrol is likely to save the average motorist around €240 per year.

As well as the 20 cent cut for petrol, the Government has announced a 15 cent cut to excise duty for diesel and a 2 cent reduction in excise duty for green diesel.

"While we welcome any measure to reduce the price of petrol and diesel, and the assurance that this will remain in place until the end of August, this is unlikely to see us avoid further record petrol and diesel prices in the short-term as the price of a barrel of oil continues to increase and wholesale prices for petrol and diesel increase accordingly," says AA Ireland Head of Communications, Paddy Comyn.

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