The AA has said that the average price of a litre of petrol has fallen to €1.23 as Irish drivers tentatively start to take to the roads once more.
Diesel falls too
The cost of diesel has fallen too, down to a national average of €1.15 per litre, a fall that the AA says will be a welcome relief to those motorists getting back on the road this week. Those prices are dramatically lower compared to where they were at the start of the year - €1.44 for petrol and €1.35 for diesel. While the environmental lobby might not be too happy about it, that does represent a considerable saving for those of us who need to get back to driving right now.
Something to be welcomed
"As the country starts the slow process of lifting the COVID-19 restrictions, we have seen traffic levels start to increase somewhat with more people undertaking journeys to the likes of hardware stores and garden centres and, with many of us looking to keep our day-to-day costs down, the continued drop in fuel prices is something to be welcomed," Conor Faughnan, AA Director of Consumer Affairs stated.
While the price of a barrel of crude oil has bounced back from the all-time lows seen in March and April, it has still fallen a long way. The Brent Crude index (the one which forms the basis for Ireland's imports) now stands at USD$35 per barrel - down from USD$65 a barrel late last year.
Prices likely to stay low
"In recent weeks we have seen crude prices bound back from the historic lows that were seen in late-April, but even with this recovery the cost per barrel remains significantly below levels that we saw before the global impact of COVID-19 became clear," Faughnan added. "As countries across the globe begin to ease restrictions, we could see demand start to increase but it is unlikely to be at the same rate as we would normally see for someone time. With so many across the world working from home, travelling less, and choosing to travel more by bike or walking, it's likely that demand will stay low for the time being and as a result pump prices can be expected to remain close to their current level."