Petrol hits three-year high as AA Ireland calls for tax change

Fuel and insurance hikes were pricing them off the roads, group says

Drivers want the Government to considering cutting motor fuel taxes as prices have hit a three-year high.

Figures from insurer AA Ireland show that a litre of petrol now costs €1.476 on average, compared with €1.41 last month, while motorists pay €1.378 for diesel from €1.31 in May.

Conor Faughnan, AA director of consumer affairs, argued that recent price increases meant that it was time for the Government to re-assess the "exceptionally high" taxes on both petrol and diesel.

"In particular, given that we are often hearing from Leinster House that the recession is behind us, it's time for the 20 cent of 'emergency taxes' introduced during the worst years of the economic crisis to be reduced or removed," he said.


AA Ireland noted that fuel prices are at their highest since 2015. A litre of petrol is 9 cent more expensive than at the start of 2018 while diesel costs more than 10 cent extra.

Mr Faughnan pointed out that circumstances forced Irish people to rely heavily on their cars, but fuel and insurance hikes were pricing them off the roads.

“With fuel prices continuing to climb, there is a risk that some people will start to view the costs of commuting to work as unsustainable currently or that those currently looking for employment may not be able to meet the cost of attending interviews or re-joining the workforce,” he said.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas