Fuel prices rising sharply amid excise duty review

Michael McAleer

Fuel prices have risen sharply in the past month.

The latest price monitor from the AA shows both petrol and diesel prices increased by an average of 19 cent a litre during July.

For motorists filling a 50-litre fuel tank, that amounts to €9.50 extra for a tank of diesel and €4.50 more for petrol.

The increase comes as turmoil in the Middle East continues and the government prepares to review the excise duty cuts implemented earlier this year, which are due to be phased out from September.

The temporary excise duty reductions of 27 cents per litre on petrol and 32 cents on diesel, which include the reduced NORA levy, were extended in full to August 31st. However, from 1 September a phased restoration is due to begin, adding 9 cents to petrol and 10 cents to diesel.

Diesel prices rose 11 per cent to an average of €1.92 per litre in August, up 19 cents from July’s average. Petrol prices rose to by 5 per cent to an average of €1.84 per litre, up 9 cents from July’s average.

According to an AA Ireland spokesperson: "This is a significant month-on-month increase, and motorists should understand where it has come from. Excise duty did not change during August, so what drivers are seeing at the pumps reflects global market conditions rather than any change in tax. Diesel has borne the brunt of it this month.

"The concern is what comes next. From 1 September, excise begins to be restored in stages, starting with 9 cents on petrol and 10 cents on diesel. If wholesale prices hold where they are, motorists should plan for further increases through the autumn rather than expect this month to be the peak."