What's the news?
We're all paying, on average, an extra €20 a year to run our cars, according to the AA. The average cost of running a family car for a year is €10,691.37. That small rise is in spite of the fact that, according to the Central Statistics Office's Consumer Price Index, the average cost of motor insurance has dropped by 11.5 per cent compared between June 2017 and June 2018.
According to the AA, though, the recent steep rises in the cost of fuel (up by around 9.9 per cent) have outweighed any falls in the cost of insurance.
The average price of petrol at 147.6 cent per litre as of June 2018 is up approximately 13.3c per litre on the price 12 months ago. For a typical motorist in a Band B car this means they will pay €1,707 for their year's fuel, up from €1,553, with tax making up more than 60 per cent of this figure. It represents a 0.47 per cent rise in the cost of running such a car, overall.
"The latest findings from the CSO are certainly welcome. However, we need to be mindful of thinking of the insurance crisis as a battle won. On average, the news as it relates to motor insurance is a positive one but for many people out there, particularly young drivers, drivers who have spent a number of years abroad, or those with past claims, the outlook isn't so bright. If we are to get to a position where most motorists start to see savings on their insurance then there is still a great deal of work to be done," Conor Faughnan, AA Director of Consumer Affairs stated. "In 2018, however, it appears that fuel prices has jumped to the fore as the greatest concern for average motorists. The continued climb in pump prices which we have seen on a near monthly basis is leaving a significant hole in wallets across the country.
"While we have seen some drops in the cost of crude oil recently which could signal a slow-down of the increase at the pumps, the vast number of factors which play a role in what we pay for fuel make this far from a certainty. If we want to do something to help ease the cost of motoring then we need to take a long look at the extent to which we tax fuel," Faughnan added. "As a nation we have a long history of under-investment in public transport, particularly in rural areas, and it's simply unfair to put such significant expenses on those who have no alternative to the private car to get to work."
The AA says that other motoring costs, outside of fuel and insurance, did not change significantly in the past year.