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Political unrest and an inflexible taxation system have driven the price of a litre of petrol to its highest level in six months, according to the Automobile Association (AA).
The AA's latest analysis of average fuel prices around the country shows that while diesel has actually fallen slightly by 0.2c per litre to an average price of 136.8c per litres, petrol has gone up by 4c to 146.1c per litre.
"Unfortunately, at the moment we are seeing significant fluctuations in the cost of crude oil and that's having a direct effect on what motorists are paying at the pump. A combination of recent OPEC (Organisation of Petroleum Exporting Countries) supply cuts along with ongoing political unrest in several oil producing countries means that the gap between the available supply and the global demand for oil has tightened," Conor Faughnan, AA Director of Consumer Affairs stated.
"However, motorists can do their own pockets a favour if they get into the habit of shopping around. Due to the current turbulence in relation to crude oil costs, different garages will be selling both fuels at different rates, depending on the cost of a barrel of oil when they bought their current supply. The important thing for motorists to remember when it comes to fuel is that you need to shop around in the same way that you do when renewing your insurance. Don't fall into the habit of going to the same garage every time, but instead take note of which garage is offering the best deal in your area each time you need to fill up."
The price of crude oil has fluctuated wildly in recent years, from a peak of USD$143 per barrel in 2008 to a low of just USD$37 a barrel in 2016. The price for US-based oil has fluctuated by even more than that, but Irish prices take their cues from the Brent price. Since April, the cost of a barrel of Brent crude has risen from USD$68 to around USD$73. However, the AA is laying the blame of increasing costs squarely at the door of the Department of Finance, saying that the Irish taxation system, which accounts for more than 60 per cent of the price of each litre at the pump, is punishing hard-pressed commuters.
"Ultimately, I think we're unlikely to see any change in the levels of taxation on both fuels any time soon but Government needs to look at how this excessive level of tax is impacting on those across the country who rely on the private car to commute to and from work," Faughnan added. "Particularly in rural areas, Ireland's workforce is still heavily dependent on the private car as a result of a history of underinvestment in public transport and the current level of tax on fuel only acts to punish people for the failure of the current and previous governments."