Petrol suppliers here have vowed to hold off on a price increase even as crude oil surged to its highest price in 10 years this week. But that stance could soon change, they said, if violence in the Middle East continued. A spokeswoman for Statoil said it had no plans to move up in its bi-monthly price meeting next week because of "a volatile market that might just be making a blip on the radar screen".
Shell also said it would not move yet to raise its wholesale petrol and heating oil prices.
But if Middle East strife keeps oil prices this high for more than a week, companies may have no alternative but to raise prices again, said Automobile Association spokesman Mr Conor Faughnan.
"It all depends on what happens now, whether things calm down or degenerate," he said. "But with supplies so tight already, I couldn't imagine this not resulting in a price rise that customers could see four to six weeks down the line."
The average pump price in the Republic for unleaded petrol stands at 76.2p per litre, while diesel fuel costs 74.2p per litre. Prices have increased almost 19 per cent since the beginning of the year, Mr Faughnan said.
He urged the Government to ease the situation by reducing its duty and VAT charges, which account for almost half the pump price. "The Government should make £1.3 billion this year from the fuel tax, most of which they don't need," Mr Faughnan said. "It's up to them now to alleviate the crisis."
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