Motorists are facing continued pressure as petrol and diesel prices rise for the third consecutive month. The increase comes as crude oil costs have been climbing, recently reaching a six-month high.
This month, petrol prices have risen by 2 cents per litre, bringing the average price to €1.76 per litre. Diesel prices have also climbed, with an additional 3 cents per litre, making the average cost €1.73 per litre, according to the January AA Ireland Fuel Survey.
The price hikes are linked to new rules that require a higher percentage of biofuels in petrol and diesel starting this year. Legislation mandates that a greater proportion of the fuels at Irish pumps be made from biofuels.
This marks the fourth increase in motor fuel prices in the last year. In August, the government reinstated the full excise duty rate on petrol and diesel. Prices then rose again in October due to an increase in the carbon tax.
Industry group Fuels for Ireland has estimated that these four hikes could add around 15 cents per litre to the cost of petrol and about 12 cents to diesel.
Over half of the price motorists pay for fuel is made up of taxes and levies, including VAT and carbon tax. AA Ireland’s marketing and PR executive, Elena Leao, expressed disappointment at the continued price increases. “Motorists continue to feel the strain,” she said.
However, there is some positive news for electric vehicle (EV) drivers. The cost of driving an EV for 17,000 km annually has decreased to €811.20, a reduction from the previous period.
Leao advised all motorists—whether driving petrol, diesel, or electric vehicles—to stay informed and look for ways to reduce costs. Simple measures like checking tyre pressure, fluid levels, and removing unnecessary weight can improve fuel efficiency.
Meanwhile, global oil prices remain near recent highs and are expected to drive up costs across the economy, including in Ireland. The weak euro against the dollar is making the situation worse.
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