What's the news?
There has been a slight reduction in the cost of petrol and diesel, according to the results of the latest AA Ireland fuel prices survey. As stated by the organisation, the average price per litre of petrol is currently 143.8c, down from an average of 147.7c in June. With diesel, it's a broadly similar story, the average cost having fallen by around 3c from a June high of 137.8c per litre to a current 134.2c. Prices however, still remain inordinately high, the cost of fuel remaining at the second highest level recorded by the AA in 2018.
According to the AA's Director of Consumer Affairs, Conor Faughnan: "Even with this welcome drop, we're still paying far more for petrol and diesel than we have been in the past, in fact both fuels are up by over 10c compared to July 2017."
The cost of fuel has indeed risen significantly overall in the last 12 months from averages of 131.9c and 119.2c per litre of petrol and diesel respectively to the current levels, according to the AA.
The main factor in the recent fuel price reduction has been the slight drop in the price of crude oil, which has fallen from $79 a barrel to $74 a barrel since the beginning of July. The drop is largely down to investor uncertainties surrounding the current trade war between the US and China.
"While this drop in crude oil prices and the resultant drop in what we pay at the pump is welcome news for motorists, oil prices remain highly volatile making it impossible to know if this trend will continue into the future," Faughnan added. Considering further confusion over the last few days regarding President Trump's intentions on Iran, OPEC's reaction to the situation, the ongoing Sino-American trade war and acts of piracy against oil tankers in the Red Sea, it seems highly unlikely that fuel prices will settle down for long.