Consumers' body warns of price hikes

Consumers could face a raft of price rises if the cost of fuel continues to soar, a leading price watchdog warned today.

Consumers could face a raft of price rises if the cost of fuel continues to soar, a leading price watchdog warned today.

The Consumers Association of Ireland said any increased costs of goods or services may not be immediately revealed due to a poor price monitoring system. Mr Dermot Jewell of the association said: "You forget how much transportation is at the background of goods and services.

"The difficulty there is businesses are adverse to absorbing costs, and will try to pass them on."

Petrol prices on garage forecourts around the country have shot up to just under a euro a litre over the last few weeks.  International instability in the Middle East region has caused crude oil prices to soar to around  $40 a barrel and the price of the euro against the dollar has also had adverse affects.

READ MORE

Road hauliers have already pointed out the strain of the soaring fuel costs on their business by holding a protest outside the Dail last week.

Trucks from the Irish Road Haulage Association rolled in to Dublin's Kildare Street as members called on the Government to lower the excise duties.

Levies increased after ministers slapped an extra 5 cent onto every litre of petrol or diesel purchased in last December's budget. The AA said over the past two months the cost of a litre of petrol has crept up from an average of 91 cent to close to a Euro.

AA spokesman, Mr Conor Faulknan said this is due to the international price of oil but at home it could also be blamed on Finance Minister Charlie McCreevy's extra 5 cent excise duty.