+34
The current prices do not take into account the temporary tax cuts that apply to both petrol and diesel
Fuel prices are rising again. Photograph: Colin Keegan, Collins Photo Agencyin the early spring but steadied as we headed into summer with both sides appearing to be inching towards some class of settlement.
Hope of that happening has receded in recent weeks with the collapse of a tentative truce, the failure of talks to make any meaningful progress and then – in more recent days – the resumption of hostilities driving oil prices higher on global markets. Well, the situation changes by the hour but at the time of writing – Friday morning – the price of a barrel of Brent crude, which is widely considered the global benchmark for wholesale oil prices, was just under $105.
Before the war started it had been hovering at around $70 a barrel and topped $120 in the days after the conflict began. When it looked like a deal was closed in the summer prices fell to less than $72 a barrel. They have been on an upward trajectory for weeks now. Things are not looking good for Irish motorists . The price of a litre of diesel on many forecourts this weekend will be north of €2. The most recent figures from the AA put the average price of a litre of petrol at €1.835 while a litre of diesel was €1.915. But those figures were published in the middle of last month and the picture has darkened considerably since then.
The fuelwatch.ie website is putting the average price of a litre of petrol at €1.87 as of Friday morning while a litre of diesel costs €1.96 with some forecourts charging around €2.03. Well, a few months back both petrol and diesel were priced at around €1.70. That means many motorists are now paying as much as €20 more for a full tank of fuel than they were in July.
If such high prices were to be sustained over the course of a year then the additional annual cost faced by motorists would be close to €350. But prices are not going to stay this high for a year are they?said the “sense is that the new normal is where we are now in respect of fuel prices because of the war in Iran and because of the fact, the global experts are saying, that there is no immediate sense of a reduction in oil prices”.
We might actually be paying more than that because it is worth remembering that the current prices do not take into account the temporary tax cuts that currently apply to both petrol and diesel. In April, the excise duty on diesel was lowered by 32 cent while the duty was cut on petrol by 27 cent on a litre of petrol.
Had there been no cuts, then, the price of a litre of diesel on many forecourts would currently be around €2.30, while a litre of petrol would cost around €2.10 You said those excise cuts were temporary. Surely the Government can’t raise taxes on fuel when it is at these levels? It would certainly be a wildly unpopular move.
As it stands, the excise could start being increased to previous levels from November but that is not set in stone and it could be that there will be a further delay in increasing the taxes announced in next month’s budget. To be honest, while most of the attention is on the cost of motor fuels, the rising price of home heating oil is arguably a much more serious problem.
It doesn’t get the attention that petrol and diesel get because prices are not advertised in large writing outside every petrol station in the country and people looking for home heating oil do not require top-ups as frequently. There is also an urban-rural divide at play with many homes outside of large towns and cities absolutely reliant on home heating oil. Absolutely. Right now 500 litres of home heating oil is averaging €790.
In early July, admittedly when demand would have been low, 500 litres was averaging €590. In February, just before the war in the Middle East began, the same volume of home heating oil was priced at around €490.
A typical Irish three- or four-bedroom house will use between 1,500 and 2,000 litres of home heating oil in a year which means the spike in prices is likely to cost many homes as much as €900 over the course of a year. But the Government has acknowledged that and cut taxes to support homeowners who rely on home heating oil has it? Um.
No. There have been some minor tweaks to the levies attached to such products but the taxes remain largely unchanged which means this cohort are likely to pay the highest price forDozens of families left homeless after Northern Ireland race riots, data shows‘No tolerance’ for public disorder during Trump visit – Garda CommissionerRory McIlroy says Donald Trump’s presence at Irish Open ‘can only be a good thing’John Kiely to remain as Limerick hurling manager next season‘How to beat the bullies’: What will rugby look like heading into the World Cup next year?
Ireland Latest News, Ireland Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
Bord Gais Energy announces price hikes for gas and electricity customersBord Gais Energy will increase its residential gas and electricity prices by 9.3% and 10% respectively from October 9th, citing global conflicts and rising network charges as the causes. The increases will add significant costs to household bills, despite the company offering the lowest gas standing charge in the market.
Read more »
Bord Gáis puts budget squeeze on Harris and Chambers with price increaseCustomers face increase of around 10% in household energy bills within days on Budget 2027
Read more »
Netflix announces 12% price hike, with its standard plan now €18.99 a monthNew price represents a €2-per-month increase, while premium option goes up to €25.99
Read more »
Energia announces price hike which will cost dual fuel customers €230 a yearAll major energy suppliers have now increased their prices
Read more »