Petrol prices reach a new high

Motorists in Ireland are paying more for fuel than ever before due to unrest in the Middle East, according to AA Roadwatch.

The organisation has called on the incoming government to reduce the tax on fuel as prices at pumps passed the €1.50 mark for the first time at the weekend.

Many service stations added between 2 cent and 3 cent to the cost of a litre in petrol this morning after wholesalers increased their prices at the weekend.

The higher costs are primarily due to a sharp rise in fuel prices over the past few weeks due to the unrest in Libya and other oil-producing countries.

"The most recent price increases mean that petrol is now at €1.50 per litre and in fact is above that in some garages. This is by far the highest price that we have ever paid for fuel in Ireland, and the impact that it is having on ordinary motorists is horrendous," said AA director of policy Conor Faughnan.

"The typical Irish motorist will use 150 litres of fuel per month based on doing 12,000 miles per year at 30 miles per gallon. That means the monthly fuel bill is now €225. In January 2009 petrol cost 95 cent per litre, and the monthly bill was €142.50," he added.

The average retail price per litre last month was €1.44 for petrol and €1.38 for diesel. This compares to just €1.28 and €1.25 respectively in Spain.

According to the AA, tax accounts for roughly two-thirds of the cost of petrol and the amount of tax paid in Ireland has risen substantially over the past two and a half years ago.

Were it not for the extra taxes added by the outgoing government since October 2008, petrol would now cost €1.32 per litre, the organisationn claimed.

The AA called on the incoming government to reduce the tax on fuel, both to spare ordinary motorists the extra burden and also to improve Ireland’s competitiveness.

"In Ireland 96 per cent of all freight moves by road which means there is a fuel price component in virtually every good and service in the economy," said Mr Faughnan. "High prices don’t just affect motorists, they affect everybody," he added.