The price of petrol and diesel is expected to rise to €2 a litre in the coming months.

Diesel is up 13c a litre to €1.78 and petrol is up 9c to €1.81 a litre according to the latest figures from AA Ireland.

Its Fuel Price Survey shows electric vehicle fuelling costs remain steady.

Crude oil has risen to almost US$90 a barrel as tensions rise in the Middle East between Iran and Israel.

The Government increased excise on fuel at the start of the month after rates were cut two years ago.

Irish Independent Personal Finance Editor Charlie Weston told The Pat Kenny Show drivers will face higher prices from the summer.

"There's another tax hike on the way - another two this year - the last of excise duty increases is due in August," he said.

"We had one at the start of this month which is probably largely responsible for the spike in prices we've seen this month.

"The price is diesel is up 13 cents this month... petrol is €1.81 a litre and diesel €1.78".

'Big factors'

Mr Weston said the overnight bombing of Iranian targets by Israel is already being felt.

"The reaction of the oil markets was to send crude oil from $87 to $91 [a barrel] for a short period before it came back to $88," he said.

"That's one of the big factors; you've got excise duty, you've got Crude prices going up and the other problem we have is we import and buy our crude oil in dollars.

"The dollar has been strengthening against the euro so it's costing us more to import a barrel of oil".

A woman filling up a car with petrol in August 2011. Image: Andrew Michael / Alamy

Mr Weston said Finance Minister Michael McGrath will likely face pressure not to implement the upcoming increase in excise duty.

"I'd be very, very doubtful that he'd go ahead with the August increase on excise duty," he said.

"He postponed some of those restorations and in the last budget announced that he would alter the deadline and wouldn't do it as quickly as intended.

"At the same time, the British exchequer... decided over there that they would not restore the temporary relief that they gave to drivers on excise duty.

"Drivers make the reasonable point that over half of what you pay at the pump goes in duties, taxes [and] VAT".

Mr Weston warned that any damage to oil refineries as a result of an escalation in the Middle East would see "a big spike in crude prices".

Main image: A man holding a petrol pump nozzle refueling petroleum his vehicle. Image: Miljan Živković / Alamy