The cost of petrol and diesel in Ireland eased in June, with a survey by the AA showing a 4c per litre fall in the price of petrol, and 5c per litre for diesel.
So how much are we paying now?
According to the AA’s survey of prices, the average price per litre of petrol now stands at €1.79, while diesel has fallen to €1.71. That means the cost of fuel in Ireland is broadly in line with most of our European neighbours. In France, the average price currently paid for petrol is €1.80, although diesel there is cheaper at €1.68. In Germany, petrol is €1.76 per litre, while diesel is €1.65. Be thankful you’re not in Denmark, where petrol is €2.01 per litre, and diesel is €1.83.
Why is fuel getting cheaper?
The short answer is that the price of crude oil has fallen and is now down to USD$83 per barrel, the lowest it’s been for a while. Jennifer Kilduff, Head of Marketing & PR for the AA (Ireland), said, “We saw a reduction in fuel prices this month. The early part of the year saw significant volatility in fuel prices mainly due to unplanned refinery outages in Europe and strikes on Russian refineries. Recently, reduced tensions and attacks have led to a softening of prices. Weaker demand in the US has resulted in high fuel stock levels amid increased production, and delays in interest rate cuts by US banks have also contributed to lower international fuel prices.”
So I can fill up my 1970s Cadillac now? Great!
Don’t celebrate too soon, as fuel price rises may well be on the horizon again. The political situation in the Middle East remains fraught, and that can easily trigger a spike in oil prices. Equally, there’s still some tax to be added back into Irish fuel prices. “The second reinstatement of excise duty is still set for August 1st, along with a carbon tax increase in October,” said Kilduff. “We urge the government to reconsider this, as it has a direct impact on pump prices. However, AA customers can save 3c per litre on petrol and diesel and 6c per litre on milesPlus fuel at participating Circle K garages using the AA Ireland App. It is also worth noting that maintaining your vehicle and practicing smart driving can help improve overall fuel efficiency.”
Kilduff also pointed out that electric motoring remains much cheaper than burning fuel - on current prices, assuming average fuel consumption of 6.0 litres per 100km, someone running a petrol car will pay more than €1,800 to cover the average annual 17,000km distance. For electric drivers, that falls to €946, assuming you charge mostly at home.