Survey shows 'significant' drop in fuel prices

The latest survey of fuel prices from motoring lobbying group AA Ireland shows a significant drop in the average price of petrol and diesel in the last month.

Petrol now costs an average of 109.9 cent per litre, down by a full 7.3 cent since last month.

Diesel prices also fell but not by as much, with the average litre now costing 110.8 cent, down by 2.8 cent on last month.

Oil prices have eased significantly in recent weeks, falling below $60 per barrel on world markets.

The survey said seasonal demand tends to make diesel more expensive during the northern hemisphere winter, which explains why diesel prices have not fallen to the same extent as petrol.

AA public affairs manager Conor Faughnan said the fall in prices was "a welcome relief for motorists".

But Mr Faughnan said prices were still "far higher" than they were at the start of the year.

He said: "We have seen retail prices move from an average of 94.8 cent in January to a high of nearly 118 cent in September before this recent fall."

"Overall, it has been a bad year for the ordinary motorist and it has highlighted once again our vulnerability to fluctuating oil prices."

The AA called on the Minister for Finance Brian Cowen to reduce the excise duty charged on petrol and diesel in next month's Budget.

"The high price of fuel has placed a huge burden on motorists and on businesses throughout 2005", said Mr Faughnan.

"The Department of Finance is supposed to be on our side. They don't need the extra revenue, and ordinary consumers badly need the relief," he added.