Petrol price decline slows, but no sharp rise expected

Rising oil prices are starting to have an impact at forecourts with a decline in the cost of fuel slowing considerably last month, according to AA Ireland.

However, the organisation said motorists are unlikely to see a big jump in the cost of fuel anytime soon as oversupply issues persist.

AA Ireland said the average price for a litre of petrol in Ireland is now 121.1 cent, down 0.9 per cent on February but still considerably lower than the 153.1 cents being charged two years ago. Diesel rose by 0.9 cents last month to an average of 106.3 cents.

AA Ireland said that while prices are rebounding, motorists are unlikely to notice a big difference in the coming months.

"The price of oil has come up off the floor in the last few weeks but the recovery is nothing to be excited about and the problems of oversupply are still there. That may cause all sorts of problems for oil producers and for some parts of the global economy but by and large it is good for us, and it is certainly good for motorists." said director of consumer affairs Conor Faughnan.

Oil prices fell as low as $27 dollars per barrel on world markets around mid-January before recovering to a current level of about $40. Prior to this, prices had averaged over $100 until the start of 2014 when the cost spiralled downwards.

The fall in oil prices has been of great benefit to the public with the average motorist saving as much as €48 per month due to lower petrol prices.

Overall, the cost of petrol has fallen by 21 per cent in Ireland, compared to a 64 per cent decline in oil prices. Mr Faughnan said the high rate of excise duty on fuel here meant Irish motorists were not benefiting as much from price reductions as motorists in other jurisdictions.