The price of petrol and diesel has increased for the first time in four months, according to the latest survey of prices from the AA.
A litre of petrol now costs an average of 159.4 cent, up 1.5 cent since January. A litre of diesel costs 153.7 cent, up 2.9 cent since January.
Prices peaked in September at over 170 cent per litre, the most expensive fuel has ever been in Ireland. Since then prices have been falling gradually, and with the relative strength of the Euro against the dollar, drivers have seen a reduction at the pump.
“2012 was an appalling year for fuel prices, the worst we have ever had,” AA director of consumer affairs Conor Faughnan. “It was the number one issue for motorists last year. This was why we were so strong in our arguments to government not to increase fuel taxes even more in the December budget. We succeeded in persuading them, although they did increase car tax which was frustrating.”
The price of oil on world markets has been relatively stable in recent weeks. The price for Brent crude has crept upwards from just over $110 per barrel at the start of the year to $118 now. Irish consumers did not really feel this initially because the euro crept upwards against the US dollar at the same time.
“Internationally, it is hard to fathom the reasons for a rise right now,” says Mr Faughnan. “Forecasts for oil demand in 2013 are quite weak, mirroring economic data, and we even had a relatively mild winter. For the price of fuel to be rising now is surprising and very disappointing.”
The AA says the main reason for high prices are high taxes. 55 per cent of the retail price of petrol is tax. Various tax increases since October 2008 have added 23 cent per litre to the retail price of petrol.
“We cannot sustain another year like last year,” says Mr Faughnan. “The year was one long fuel crisis for consumers as the government stayed deaf to their calls. It did not get worse in the budget but it did not get better either. The government will have to be more responsive this year or they will hurt ordinary motorists and they will hurt the economy.”