Minister for Finance Brian Cowen should not raise revenue by increasing petrol and diesel prices, the AA warned today.
Fuel costs have risen by 15 cent over the past year with petrol going up 3.6 cent per litre to 118.8 and diesel rose nearly seven cent to an average of 117.3 in the last month, according to the latest AA forecourt survey.
Public affairs manager Conor Faughnan said: "Although the weak dollar has cushioned the blow somewhat, it has been a year of rising prices and it is getting worse, not better.
"With further rises announced by oil companies last week we are likely to see prices go up again."
As oil prices push the closer to the €100 per barrel milestone, Mr Faughnan said Mr Cowen would be making a mistake if he were to increase the prices further.
While high fuel costs affect motorists it also has a knock-on effect on the wider economy, Mr Faughnan warned.
"Inflation has already risen to 4.8 per cent this year, driven upwards by the cost of oil. Increasing fuel taxes will add to that inflationary pressure," Mr Faughnan warned.