BY Sarah Bermingham
Wexfordfamilies already faced with back-to-schoolcosts, are set to be dealt another blow, according to AA Ireland, who have indicated that the price of petrol and diesel may soar by as much as 7 cent per litre in the next week or two.
This unwelcome news means that Irish motorists may shortly have to pay€1.70 per litre of petrol and €1.60 per litre of diesel, according to AA Ireland Director of Consumer Affairs, ConorFaughnan. This is the highest price Irish motorists have ever paid for fuel, with petrol up 20 per cent and diesel up 18 per cent, on average, since September 2011.
“Our monthly survey for August showed that petrol is averaging 163.1 cent, diesel 154 cent. This is almost as bad as the record prices that we were paying in May and the bad news is that it is set to get worse. We are expecting significant price increases to come through over the next week or so, that could even push petrol up to €1.70 per litre”.
“We are continually asked what is causing it” Faughnan said. “There are three distinct reasons. Firstly, the rise in oil prices… Secondly, there is the value of the Euro which is down by 16.5% since this time last year”.
Stating that the third reason for the high price of petrol and diesel in this country are Irish government taxes, Faughnan said that “Since October 2008 successive tax increases have added 20 cent per litre to both fuel. We are feeling the full pain of that now, which is hitting family budgets and damaging the economy. Some 57 per cent of the retail price of petrol is tax and that must come down”.
Based on the current average price of petrol it costs a family driving a saloon car with a typical 55 litre tank €87.70 to fill up. That could rise to €93.50 in the next week or two. “As prices rise, so too does the level of income the government is generating through VAT”, says Faughnan. Calling on the government to reduce taxes on the price of Irish fuel, he said “They have the ability to loosen their stranglehold on motors and businesses who are struggling desperately with the price of fuel and we implore them to take action and overhaul their fuels taxation policies for Budget 2013”.
Soaring petrol and diesel prices are likely to impact negatively on a wide range of local businesses, and come as a further blow to families at this traditionally expensive time of year.
