Good News for Motorists as July Sees ‘Significant Decrease’ in Fuel Prices

Ireland has seen a significant decrease in the cost of both petrol and diesel this month compared to June according to the latest survey of fuel prices from AA Ireland.

Petrol now costs an average of 154.5 cent per litre, down 2.9 cent since June. The fall in price for diesel was even greater as it now costs on average 144.4 cent per litre, a drop of 3.6 cent. Fuel prices have continued to fall since March of this year. In the last 4 months petrol has fallen by 7.6 cent per litre and diesel by 10.7 cent. 

“While a drop in fuel prices is always welcome, filling up in Ireland is still extremely expensive” advises Conor Faughnan, Director of Policy at The AA. “Tax plays a huge part in the cost of fuel in Ireland; the service station owners don’t reap much of the rewards for increased prices, most of what you’re paying is in tax.”

Irish drivers pay out significantly through a combination of excise duties, including carbon tax and VAT, as over 57% of the price of both diesel and petrol is tax. A typical Irish car doing typical Irish mileage* will use 1,800 litres of fuel annually or 150 litres per month. At current prices, that means drivers will pay €231.75 this month for petrol of which €132.10 is tax.

The fall in the cost of petrol and diesel is good news for summer roadtrippers

“Ireland is an island nation and we need road-transport for business. The current policy of super-high taxes on fuels hits Irish businesses as well as ordinary motorists. It is in effect an anti-stimulus measure that increases transportation and business costs across the board.” says Faughnan.

While the news that fuel prices are falling is very much welcomed, this pleasure may be short-lived. Oil prices have begun to rise and ongoing political problems in the Middle East may make that situation worse. In the last week or so there have been increases in fuel costs in the USA and an unwelcome rise in European wholesale prices. 

Diesel motorists are faring a little better and there are now more and more diesel cars on the roads.

“There is much to be said for buying a diesel car especially if you are doing higher mileages. The lower tax and fuel cost is quite attractive. However, the price of the vehicle and the higher cost of maintenance may deter would-be buyers” says Faughnan.

*If a car does 12,000 miles per year (19,200 kms) at a fuel consumption rate of 30 miles per gallon (9.42 litres per 100 kms) that car will use 150 litres of fuel per month.