Petrol edges towards €1.50 a litre

Fuel prices look set to rise again as oil broke the $100 per barrel mark this week for the first time since 2008 on the back of political unrest in Egypt.

The AA’s monthly price survey shows petrol now costs an average of 142.6 cent per litre, up 2.5 cent on last month with diesel also rising by 1.9 cent to 135.2 cent per litre.

Twelve months ago, in January 2010, petrol and diesel prices were 20 cent cheaper at €1.22 and €1.15 per litre respectively.

However, after last December’s budget added 4 cent to a litre of petrol and 2 cent to diesel and with the price of oil at a two-year high, the €1.50 per litre level may not be far off.

AA director of policy Conor Faughnan described the fuel price rise as a “shocking” start to the year for motorists and one that represented a big rise in the cost of living.

He said a normal family car needs 150 litres of fuel per month and with petrol costing €26.25 more a month now compared to last year, this is a “very big increase” in living expenses.

“Two thirds of the retail price of fuel is now tax...in fact, the Government now gets €2.6 billion per annum in taxes on petrol and diesel.”

Mr Faughnan encouraged motorists to shop around as much as possible because forecourt prices are often 5 cent below or above the overall national average.

“We have not yet seen the €1.50 mark breached, although we have had a few examples of garages charging €1.49 so it is probably not far off.

“Saving ten cents per litre means saving €15 per month. This is money that is far better off staying in your pocket rather than giving a tenner to the Government and a fiver to the oil company,” he added.

Meanwhile the Irish Road Haulage Association called on the Government to introduce a fuel duty rebate for hauliers.

Association spokesman Vincent Caulfield said increased fuel costs had helped force over 200 haulage companies out of business last year.

He said the increase in prices plus the additional 2 cent on diesel in the budget had seen the annual cost of keeping a haulage vehicle on the road rise by as much as €3,000 per annum.

Mr Caulfield said the increases were “unsustainable” and that the protection of jobs in the industry should be a priority for all political parties in the forthcoming election.