Motorists warned of rising petrol prices

Motorists can expect further increases in petrol and diesel prices in the coming days after last week's record high for crude…

Motorists can expect further increases in petrol and diesel prices in the coming days after last week's record high for crude oil.

Topaz Energy, which operates the Shell and Statoil network of forecourts, today warned consumers to expect a significant increase in the price of petrol, diesel and home heating oil.

While price increases for the consumer are of course regrettable, in the face of the 40 per cent crude oil increase since mid-August, today's decision became unavoidable
Chief executive Danny Murray

"While price increases for the consumer are of course regrettable, in the face of the 40 per cent crude oil increase since mid-August, today's decision became unavoidable," said chief executive Danny Murray.

"The high price of crude oil itself is impacted by a number of factors . . . most notably market sensitivity to developments in Middle Eastern diplomacy, tighter supplies coupled with increasing demand from emerging economies, a weak dollar and an inflow of money into commodities."

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Mr Murray said customers have been shielded from the effects of rising oil costs to date by the weakening US dollar.

"To put it in context, we estimate that motorists would be paying between 6 cents and 7.5 cents more at the pump for a litre of unleaded or diesel if the dollar had remained unchanged over the last number of months."

Topaz also blamed the rising prices in Ireland on the Government's fuel levy increase - one cent on every litre - which came into effect at the beginning of the month.

Oil has climbed about 40 per cent since the summer and reached a record high above $96 a barrel last week.