Motorists have been advised to shop around for their petrol following confirmation that fuel prices are to rise.
The increase is the latest in a series of price rises to affect motorists, including increases in motor tax and vehicle registration tax.
In its fortnightly review of prices, Statoil has recommended a 1.23 cent increase in its wholesale price of unleaded petrol. This would bring the recommended retail price to 94.3 cent per litre.
Statoil has played down the price increase, saying it was a recommendation and might not be passed on to consumers in all cases.
The Automobile Association said petrol prices had been reasonably static in recent months but slight price rises were expected.
Yesterday, Shell Ireland said the company was "monitoring the situation" while an Esso Ireland spokesman said he could not comment on possible increases.
Mr Conor Faughnan, AA public affairs manager, said it was in the interest of every motorist to become "price fussy". This would protect them from the effect of price rises, he said.
Mr Faughnan said there were wide variations in petrol prices, even between outlets being supplied by the same company.
"Many of us are creatures of habit and use the same brand of petrol but we need to break that habit," he said. "Set aside loyalty to a brand and start having loyalty to the outlets with the cheapest prices. Not only does it save you money but it also adds to price competitiveness."
A Statoil spokeswoman said the price increase was the result of a fortnightly review, and was not suddenly rushed through because of the Iraqi situation and the ongoing national strike in Venezuela, one of the world's largest oil producers. "But obviously these factors were taken into account in the review."
She said the price rise may not filter down to all consumers, due to strong competition. Retailers would have to decide whether or not to pass on the increase, she said. "The competition is fierce and some retailers are selling below the recommended price anyway."
It was impossible to say if this was the first in a series of price increases. "We'll have to wait and see what happens."
She said the price was dependent on the international markets. Crude oil prices reached a two-year high in recent days, as the Venezuelan strike continued and the US threat of a war with Iraq grew.
The expected rise in motor fuel prices will be a further blow to motorists, following the 12 per cent rise in motor tax which came into effect last week.
Some motorists are also being hit by increased vehicle registration tax (VRT). Since January 1st, cars from 1,901cc upwards are being taxed at the 30 per cent VRT rate, a 5 per cent increase in some cases.
Motorists were also hit by a three cent a litre increase in diesel prices in the Budget.
And the Budget's one per cent rise in the lower rate of VAT has affected a wide range of services, including garage repairs.
In Dublin, motorists could also be hit by an increase in parking charges, following proposals to increase fees to €2.28 per hour in the city centre and €1.80 elsewhere.