At last! A drop in fuel prices after a series of increases

PETROL prices have fallen for the first time in more than three months, according to the latest fuel price survey.

The survey from AA Ireland shows that the average cost of a litre of both petrol and diesel has fallen for the first time in three months.

Conor Faughnan, AA director of consumer affairs, said motorists would be glad to see prices going down after successive increases already this year.

‘Rising fuel prices has been one of the major motoring stories of this year, so there’s no doubt that the average motorist will welcome this dip in pump prices,’ he said.

‘We know from previous AA research that fuel is one of the most significant expenses when it comes to running a car and that the spike we had seen in both petrol and diesel prices this year was placing strain on people who rely on their car.

‘Even with this welcome drop, we’re still paying far more for petrol and diesel than we have been in the past. In fact, both fuels are up by over 10c compared to July 2017, so it’s important that we come to a more permanent solution to deal with high pump prices.’

According to the AA, a litre of petrol currently costs 143.8c on average, from an average price of 147.6c last month. Meanwhile, the cost of a litre of diesel has fallen by 3c, dropping from 137.8c in June to a current average of 134.2c per litre. Despite the drop in pump prices, the cost of both fuels remain at the second highest level recorded in 2018.

The AA’s monthly fuel prices tracker reveals that in the past 12 months the cost of a litre of petrol has risen from 131.9c to the current level of 143.8c while diesel has risen from 119.2c to 134.2c in the same period.

The significant decline in the cost of crude oil is the main factor in the price drop, with crude oil prices dropping by $5 to $74 a barrel.

And according to the AA, an average motorist who drives 12,000 miles per year (19,200 km) at a fuel consumption rate of 30 miles per gallon (9.42 litres per 100 km) will use 150 litres of fuel per month. At current prices that motorist will pay €215.70 per month for petrol. Meanwhile, a motorist driving a diesel car will spend €201.30 a month.