Advertisement

Warning for motorists as petrol prices climb

The AA Ireland has cautioned against any further increases in taxation on petrol and diesel as pa...
Jack Quann
Jack Quann

13.32 29 Sep 2019


Share this article


Warning for motorists as petro...

Warning for motorists as petrol prices climb

Jack Quann
Jack Quann

13.32 29 Sep 2019


Share this article


The AA Ireland has cautioned against any further increases in taxation on petrol and diesel as part of Budget 2020.

It says this is due to the latest increase in pump prices placing "further strain" on motorists.

The AA's latest fuel prices survey has found that the cost of a litre of petrol has increased by almost 3.5c in the past month - from 141.3c to the current average nationwide price of 144.7c.

Advertisement

While diesel car owners saw the average price of a litre climb by almost 3c to 134.4c.

But the AA says increases were expected this month on foot of the Saudi drone attacks, and subsequent rise in world oil prices.

The increase is actually at the lower end of what had been expected - but the AA points out that prices have been rising since well before the Saudi incident.

Director of consumer affairs Conor Faughnan says: "Oil prices fell sharply at the end of last year and Irish fuel prices dropped as well.

"Since then they have risen every month and are at an 11-month high at the moment.

"Unfortunately, the trend appears to be in the wrong direction based on world oil prices."

"Cash grab"

The AA has also warned that increases to fuel taxes in the budget, likely to be packaged as a climate change measure, are unlikely to improve Ireland's carbon footprint in the absence of alternatives.

"Carbon taxes are designed to 'nudge' consumer behaviour towards alternatives which is the whole point", Mr Faughnan adds.

"When you don't have alternatives you don't get the switch but you do get lots of extra tax money from consumers.

"I'm afraid it's very cynical of the government which understands this point perfectly well."

"A carbon tax on its own will not change commuter behaviour and will only be viewed by many as a cash grab unless you offer some form of a carrot to facilitate those who move to cleaner forms of transport along with the stick that is additional taxation".

According to the AA's fuel price analysis, over 60% of the cost of a litre of petrol is currently made up of taxation, with over 55% of the cost of a litre of diesel consisting of tax.

Statistics from the European Environment Agency suggest Ireland currently has the 11th highest rate of excise duty on petrol within the EU-28 and the eighth highest rate on diesel.


Share this article


Read more about

AA Ireland Budget 2020 Car Owners Carbon Tax Climate Change Conor Faughnan Diesel Oil Prices Petrol Prices Saudi Arabia

Most Popular