Petrol and diesel prices are increasing from midnight tonight as tax cuts introduced after the Russian invasion of Ukraine are reversed.
The tax cuts are being reversed in three phases – the first at midnight tonight, the second on September 1st and the last on October 31st.
Tonight’s change will the price of petrol increasing by 6c per litre and the price of diesel increasing by 5c per litre.
On Newstalk Breakfast, motoring journalist Ger Herbert said it will cost the average driver around €3 more to fill their tank from tonight.
By the time the cuts are fully reversed, she said, it will cost an extra €10.
Ms Herbert said fuel prices have fallen significantly since the cuts were introduced in March 2020.
“At the time they were cut, they were actually the highest the AA had ever recorded – and they have been recording fuel prices since 1991,” she said.
“Now, at the moment, they are actually quite stable and we are almost back at, sort of, September 2021 prices.
“So, according to pumps.ie, you are probably paying anywhere between sort of €1.53 and €1.55 a litre for petrol and Diesel about €1.42 to €1.44.
“Now, from midnight tonight, there is 6c going back on petrol and 5c going back on diesel.”
Fuel prices
Ms Herbert said the concern for motorists is that international fuel prices will start to increase again.
“Prices could rise during the summer and by the time October 31st comes and the full brunt of that restoration is being felt we could be in a very different situation with fuel prices,” she said.
“It is lucky at the moment that they are so low.”
Excise duty
She said the tax restoration is another hit for struggling motorists.
“Look I know motorists are at the bottom of the pile when it comes to being looked after or whatever but they are still renters, they are mortgage payers, they are still feeling the brunt of the high cost of living,” she said.
“We have the highest electricity prices in Europe so I think we’re paying through the nose at the moment.
“They are paying a huge amount of tax as it is. Half of what you pay at the pumps if you are buying petrol goes to the Government, 45% if you are buying diesel.
“So, I mean motorists are already paying a lot so I think this is not going to be welcome news regardless of how low fuel prices are at the moment.”
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