Fuel prices continue to drop

Motoring

Fuel prices continue to drop

Petrol and diesel prices have fallen by an average of 2.4c and 3c per litre respectively across the country, according to the latest monthly fuel prices survey from AA Ireland.

On average a litre of petrol now costs 131.9c, while a litre of diesel will cost 119.2c down from June’s prices of 134.3c and 122.2c per litre respectively.

The latest drops marks the fourth successive month in which prices have fallen, with the cost of a litre of now at its lowest since December 2016 while diesel is at its least expensive since October of last year.

“The last several months have brought good news for motorists when it comes to fuel prices and July has, thankfully, continued that trend,” Conor Faughnan, AA Director of Consumer Affairs stated.

“With the cost of a litre of fuel continuing to fall prices are moving closer and closer to where they were 12 months ago, with petrol prices just 0.6 per litre more expensive than it was in July 2016, although diesel is still almost 3c up on this time last year.

“Thankfully, as things currently stand many of the factors which inform fuel prices, such as European wholesale prices, are pointing in the right direction for motorists, although it’s impossible to know how long this trend will last for.”

Despite the drop in fuel prices, the motoring organisation has highlighted that the extent to which fuel is taxed in Ireland only serves to make it tougher for people who rely on their car to commute to work.

The AA’s fuel prices survey found that tax accounts for 64.77% of the current price of a litre of petrol, and 60.53% of the price of a litre of diesel.

“Driving is an essential part of the lives of many people who rely on their car to get to work or college due to the absence of reliable public transport in many parts of the country, especially rural areas,” Faughnan added.

“No-one is arguing for fuel to not be taxed, but instead we need to have a sensible taxation system in place when it comes to petrol or diesel.”

Despite the national drop in fuel prices, the AA report noted a minor increase in the cost of a barrel of oil, a key trend in setting future fuel prices. Currently a barrel of oil costs $48.69 up over $3 when compared to the cost of oil in late June.

*AA Fuel Usage figures: If a car does 12,000 miles per year (19,200 km) at a fuel consumption rate of 30 miles per gallon (9.42 litres per 100 km) that car will use 150 litres of fuel per month. At current prices that motorist will pay this €197.85 per month for petrol of which €128.15 is tax. Meanwhile, a motorist driving a diesel powered vehicle will spend €178.80 per month on fuel, of which €108.23 is tax.