Irish Taxi Forum
Public Area => Taxi Talk => Topic started by: silverbullet on January 21, 2024, 06:13:03 pm
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Petrol and diesel prices fall for fourth month in a row
Worries that volatility in Ukraine and the Middle East could send prices back up
Charlie Weston
Thu 18 Jan 2024 at 02:30
Petrol and diesel prices fell for the fourth month in a row this month, the first time this has happened in years.
Pump prices are now 17c a litre cheaper than they were in September. Petrol fell from €1.72 a litre in December to €1.68.
Diesel also dropped by 4c a litre, from €1.72 last month to €1.68 now, according to the latest AA Ireland fuel survey.
The last time both prices fell four months in a row was in 2017.
However, there are warnings that the conflict in the Middle East, particularly attacks on ships in the Red Sea, could send pump prices up again.
Oil giant BP said this week it would pause all shipments of oil through the Red Sea after recent attacks on vessels by Houthi rebels.
Crude oil prices have crept up to $79 a barrel in recent days.
Despite the four consecutive months of petrol and diesel costs dropping, pump prices are still the levels they were at last year.
In 2023, petrol hit a low of €1.57, with diesel falling as low as €1.47.
Electric vehicle fuelling costs have fallen marginally, but the AA says they remain elevated.
Head of communications at AA Ireland Blake Boland welcomed price drops at the pumps.
“Motorists in Ireland have been struggling with costs of late, and this fuel price drop takes a little of the sting out of their monthly bills,” Mr Boland said.
“This means that prices are now 17c cheaper than they were in September.
“However, prices are still high in comparison to summer of last year when we saw lows of €1.57 a litre for Petrol in May. Diesel was as low as €1.47 in May.”
Taxes make up around half the price of a litre of motor fuel. The Government deferred restoring the full rate of excise duty on petrol and diesel in the Budget in October.
However, 4c will be added to petrol, with 3c added to diesel prices, on April 1 and with the same amounts added again on August 1.
Mr Boland said crude oil prices had risen slightly since December, but were far below peaks they hit last year.
“Thankfully, crude oil prices have reduced since we saw highs of $94 a barrel in late September. It is now hovering around $79 a barrel.
“Although not directly linked, it is great to see this fall in crude oil prices transferring to the pumps in Ireland over recent months.”
But Mr Boland said this does not necessarily mean that prices in forecourts would continue to fall.
“We have seen a lot of producers stepping up supply of oil based on high prices seen in September.”
That incentive was not there as strongly any more, Mr Boland said.
“A combination of factors lead to the price we pay at the pumps, and further escalation of conflict in Ukraine or the Middle East could swing market prices,” he said.
As a way to save money on petrol and diesel, drivers were advised by AA Ireland to consider adjusting their speed.
An AA Ireland experiment showed that reducing your speed on the motorway from 120kmh to 100kmh could cut fuel bills by close to a third.
AA Ireland said electric vehicle owners had seen a marginal drop in charging costs in January. EV owners will pay on average €967 a year, compared with the December average of €975 to cover the national average of 17,000km a year.
This figure of €967 was far higher compared to before Russia’s invasion of Ukraine, but still compared quite favourably with combustion engine equivalents, AA Ireland said.
A similarly-sized diesel vehicle would cost approximately €2,000 to cover that same distance of 17,000km.
Mr Boland said: “EV drivers need to shop around to get the best rates possible on their home electricity. There are new entrants to the market and lots of favourable switcher rates.”
EV drivers with smart meters taking advantage of cheap night-time rates could cut their yearly bill for the national average of 17,000km to just under €300.
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