Motorists could pay hire prices for fuel at pumps from next month.

It is expected a reduced excise duty on petrol and diesel will be removed in line with updated cost of living measures.

However, some people are concerned that a sudden dramatic increase in prices could have people queuing at petrol stations days before.

Chief Executive Officer of Fuels for Ireland Kevin McPartlan said that a gradual increase would be best to avoid chaos.

"I think it's really important that we don't have any particular day where fuel goes up very dramatically because all that will do is create a spike in demand as we approach that period of time, which makes managing of stocks really really difficult", he said.

"You might end up with garages running out of stuff."

Extra cost

Mr McPartlan has been examining what impact the change will have on the average-sized family car.

"[It] would mean for an average family car an increase of about €12 for a tank of fuel, when it comes to petrol", he explained.

"It will be about [an extra] €10 for tank of fuel for diesel cars."

Transport commentator Conor Faughnan told Newstalk that the tariffs are going to be 'enormously high'.

"No matter what way you do it, when you get to the end, if will reimpose those sort of pre-crisis taxes that were being levied on fuels, you have to remember for context, there are enormously high taxes", he said

"What they did effectively was to knock off about 21 cent per litre to the price of petrol and 60 cent per litre to the price of diesel and that helped, helped enormously."

"If they rip that bandage off, then unfortunately that effects all consumers immediately. It goes straight back on to the price."

"We make petrol and diesel deliberately very expensive in Ireland we do that for policy reasons and for money."

Main image shows a man filling his car up with fuel at a petrol station. Picture by: Graham Hunt/Alamy