2 weeks Ago
Three months of falling petrol and diesel prices have come to a halt with a rise in the cost of motor fuel this month. The cost of both petrol and diesel went up despite a fall in crude-oil prices. Petrol prices have risen by 2c to an average of €1.
73 per litre, while diesel prices have increased by 1c to €1.67 per litre, according to the latest AA Ireland Fuel Survey. AA said the rise in prices was down to what it said was retailers charging different prices at different fuel forecourts.
Crude-oil prices have reduced slightly this month, averaging around $72 (€68) per barrel. There has been a lot of volatility in oil markets in the last week following the US election. President-elect Donald Trump is seen as more pro-oil than his defeated rival Kamala Harris.
It is thought Trump may overturn the ban on new oil and gas drilling on federal land. On the other hand, there are fears Trump will impose tariffs and begin a trade war with China which could hamper global growth. This would weaken demand for oil.
Another factor that is depressing the price of crude oil is the speculation Trump could force an end to the Russia-Ukraine war, according to Justin Doyle, of specialist bank in Dublin Investec, in a note to investors. If the conflict were to end and Russian sanctions eased, Asian refineries might be deprived of the discounted Russian oil and have to pass higher costs on to consumers via the prices of refined products such as jet fuel and diesel. However, the strengthening of the dollar against the euro is set to make petrol and diesel more expensive in the coming months.
This is due to the fact that we import all our motor fuel and it is priced in dollars. The euro is sitting at yearly lows of $1.0550.
AA Ireland’s head of marketing and PR, Jennifer Kilduff, said the rise in petrol and diesel prices for motorists was disappointing. But there was better news for electric-vehicle owners, who have to pay less to charge their vehicles following electricity price cuts this month. “Great news for EV drivers as reductions from Electric Ireland kicked in from November 1,” Ms Kilduff said.
She said shopping around for the best energy provider rates, making use of home charging and using night rates will further decrease running costs. “For petrol and diesel drivers, the price at the pump is marginally higher this month, mainly down to varying prices at different retailers around the country,” she added. Electric vehicle owners can expect to pay an average of €808.
64 a year to cover an average of 17,000km per year. Industry group Fuels for Ireland has called on the new government to set up an expert group on taxation to address what it describes as the “increasing burden” of fuel taxes on Irish motorists. Fuels for Ireland, which counts fuel groups Applegreen, Emo Oil and Circle K among its members, said the move in last month’s budget to increase carbon tax on petrol and diesel means this country has among the most heavily taxed motor fuels in Europe.
The carbon tax increase announced in the budget has added 2.1c per litre of petrol and 2.5c per litre of diesel.
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