Effect of rising oil prices being felt at pumps - AA

Friday 18 March 2016 12.08
The average price for a litre of petrol is now 121.1 cent, a very slight drop of 0.9 cents on the February figure, and significantly lower than the price falls of previous months
The average price for a litre of petrol is now 121.1 cent, a very slight drop of 0.9 cents on the February figure, and significantly lower than the price falls of previous months

The recent rise in global oil prices is starting to be felt at fuel pumps, according to AA Ireland.

The average price for a litre of petrol is now 121.1 cent, a very slight drop of 0.9 cents on the February figure, and significantly lower than the price falls of previous months.

Diesel prices actually rose by 0.9 cents to an average of 106.3.

Oil fell as low as $27 per barrel on world markets around mid January before recovering in a slightly rickety manner to a current level of about $40, with Irish fuel prices falling in response.

AA Director of Consumer Affairs Conor Faughnan said: "The price of oil has come up off the floor in the last few weeks but the recovery is nothing to be excited about and the problems of oversupply are still there.

"That may cause all sorts of problems for oil producers and for some parts of the global economy but by and large it is good for us, and it is certainly good for motorists," he added.

In March 2014 a litre of petrol cost 153.1 cent; it is now 121.1, which means a typical motorist now spends about €48 less each month on fuel.

The AA defines a typical motorist as a driver of a car doing 19,200km annually at a consumption rate of 9.42 litres per 100km.

In the last two years the price of oil fell by 64% from $110 to $40 but the retail price of petrol only fell by 21%.

The AA said this is because so much of the price at the pump is tax in the form of excise duty per litre.

Keywords: fuel, oil, aa