The cost of diesel continued to fall into the New Year, with prices now 1.7% lower at the pumps than they were in December, the latest AA fuel prices survey has found.
It means the average price for a litre of diesel is now €1.71.
But petrol remained steady, with a litre of it now costing on average €1.61, up just 0.6% on a month earlier.
The AA is warning though that prices may rise again in the lead up to or after February 5th when an EU wide ban on the importation of oil products from Russia takes effect.
"Europe has been raising its diesel imports from Asia and the Middle East; the two regions are now expected to shoulder most of its exports after the ban comes into place," said AA Ireland's head of communications, Paddy Comyn.
"The longer freight distances, however, and higher demand for tankers shipping the fuel into Europe have meant that freight rates are rising, potentially adding to the cost for consumers at the pumps. In the short term, there's a risk of higher prices."
This will be followed by the removal by the Government of the temporary reduction of duty on petrol and diesel at the end of February.
That will see 15c a litre added to diesel and 20c to petrol, unless the Government decides at the last minute to extend it.
But the AA says if that doesn't happen, then the reintroduction of the higher duty rates should be brought in by degrees.
"Suddenly switching off the excise duty reductions overnight will inevitably lead to anxiety leading up to the end of February, which could lead to tailbacks filling stations or pumps running dry in certain areas," said Mr Comyn.
"A more prudent approach would be to stagger this over two to three months."
Fuel prices have been a major contributor to inflation over the past year, though as wholesale prices have settled in recent months inflation has begun to moderate.
