The price of motor fuel is at its lowest point over five years, according to AA Ireland.

The motoring association said that the average price of a litre of petrol now stands at 129.5c, down 12.9c year-on-year. 

Diesel now costs an average of 118.2c per litre, it says, which is 15.8c lower on the same period of 2014.

Cheaper fuel has come as a result of falling oil prices, with a barrel of oil now more than 60% cheaper than it was late last year. 

However a weaker euro, along with the taxes applied to fuel in Ireland, means that the price to consumers has not declined by a similar proportion.

A year ago a euro was worth around $1.25 – however today it is trading below $1.09, making it more expensive for Irish firms to buy products priced in the US currency.

Meanwhile the AA estimates that the 91c of the amount paid on a litre of petrol is tax – meaning that the price of the actual fuel only accounts for a small proportion of the total cost.

With diesel, taxation accounts for 77c of each litre’s price, it said.

AA Ireland called for the Government to reverse tax rises introduced on car fuel between 2008 and 2012, which it said would cut prices by 18-20c per litre.