The recent drop in the price of fuel at the pumps could be short-lived, AA Ireland has warned.

The company’s latest price survey shows that the price of both petrol and diesel has fallen in recent weeks.

The average price of diesel at pumps around the country is now €1.96 per litre – down 6c on this time last month when it was €2,02.

Meanwhile, the average price of petrol is now €1.77 – down 7c on this time last month.

On Breakfast Briefing this morning however, AA Ireland spokesman Paddy Comyn said things could change quickly as the EU considers further sanctions on Russian oil.

The EU plans to ban imports of crude oil from Russia on December 5th with a ban on other oil products to come in on February 5th, 2023.

Meanwhile, a new G7 price cap is also expected to be brought in on December 5th.

The plan will allow shipping service providers to work with Russia, provided the oil being exported is being sold at enforced low prices.

“EU ambassadors are scheduled to meet today with the aim of approving what would be a price cap on Russian oil,” said Mr Comyn.

“Obviously, we have a ban on Russian oil across Europe coming which will take effect on December 5th, with all products set to be banned by February.”

He said the next few weeks will determine the direction of prices:

“There have been some soap opera shenanigans in the background where the US have actually encouraged the EU to instead adopt something of a price cap,” he said.

“So, it is almost like a way of having your cake and eating it. The idea would be to limit what Russia can make on exports of oil while still averting a shortage of the fuel – so interesting times ahead.”

US officials do not expect Russia to respond to the price cap by withholding supplies as that would risk damaging the profits of Russian oil fields and impact on their agreements with China and India.