According to the latest fuel survey information from AA Ireland, petrol and diesel prices are experiencing an upward trend. While prices remained stable last month, petrol prices have increased by 3%, with the average cost per litre rising from €1.65 to €1.70. However, diesel prices have seen a greater increase, rising by nearly 6% or 9 cents per litre compared to the previous month’s average.
Although the official fuel prices survey is set to be released later this month, AA Ireland provided indicative figures in response to a request from the Irish Independent. Blake Boland, the head of communications at AA Ireland, attributed the rise in prices to the increase in the price of Brent crude oil, which has reached around $86 per barrel, its highest point this year. It is expected that Brent crude prices will approach $90 per barrel by the end of the year.
Boland stated, “We have observed a steady increase in the cost of raw materials over the past few months, and they are currently at their highest level in 2023. Hopefully, this is close to the peak of oil prices for this year, but there are still some scheduled duty increases to come.”
Further increases in fuel excise duty are scheduled to be implemented at the beginning of next month, adding 7 cents per litre to petrol and 5 cents per litre to diesel. Additionally, on October 31st, the phased restoration of the full rate of excise duty will result in an 8-cent increase per litre of petrol and a 6-cent increase per litre of diesel.
Based on today’s prices, AA Ireland calculated that the full restoration of excise duty would lead to an average petrol price of €1.85 per litre and an average diesel price of €1.75 per litre by November.
Fuels for Ireland, an organization that includes oil importers and fuel retailers, acknowledged the increase in crude oil prices over the past few months. Chief executive Kevin McPartlan emphasized that multiple factors determine the prices of petrol, diesel, and home heating oil. He highlighted the market’s response to signals from Opec about fuel supply restrictions, which has led to additional risk being factored into wholesale prices by traders.
McPartlan explained, “When you combine these factors with the rising costs of doing business faced by all sectors in Ireland, it becomes clear why pump prices are higher than in recent months.”
He also pointed out that VAT is added to the final price paid by Irish consumers when filling their tanks, meaning that as fuel costs rise, so does the government’s tax revenue. On that note, Fuels for Ireland is encouraging the Finance Minister to establish an expert group to comprehensively review fiscal policies related to energy for transportation and heating.
Overall, the increase in petrol and diesel prices can be attributed to multiple factors, including the rise in Brent crude oil prices, the forthcoming fuel excise duty increases, and the general rising costs of conducting business in Ireland.
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