Dublin motorists face the prospect of London-style charges for driving in the city following the imminent introduction of the Luas light rail network, according to a report from Deloitte Consulting.

Partner Mr David Hearne says road pricing is now a "real likelihood" in the capital.

Deloitte surveyed opinions in cities across Europe and found that 72 per cent of respondents saw road pricing as an effective way of managing and reducing congestion.

"The Government has already indicated that it will consider road pricing when public transport infrastructure is in place," says Mr Hearn. "It has sanctioned parking charges of about €4 a day for Luas users, so they may need to introduce a counterbalance by charging road users who continue to come into Dublin."

He argues that the one strategy that has shown the potential to significantly reduce congestion is road pricing. "Since charges were instituted in London in February 2003, average traffic speeds in the zone have risen by 37 per cent and congestion is down by 40 per cent.

Deloitte forecasts that gridlock in western Europe will rise by 188 per cent by the end of the decade. It states that the cost of this congestion in OECD countries alone is about €810 billion or 3 per cent of GDP.

"If Government is serious about reducing congestion in Dublin, they need to start examining the issue of road pricing now," he says, noting that any such scheme would have a three-year lead-in time. "We need to avoid the historic Irish approach of leaving the planning of things a bit too late and then having to introduce them in a rushed fashion."

The Deloitte report, Combating Gridlock, says previous strategies such as building new roads, encouraging greater use of public transport and even changing land use patterns have not managed to stop a gradual worsening of bottlenecks.