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21 May 2022

Overnight petrol and diesel hikes as Russian-Ukraine crisis causes record fuel costs

Overnight petrol and diesel hikes as Russian-Ukraine causes record fuel costs

Car fuel prices took another jump as a result of the Russia-Ukraine crisis, with an average increase of 2 cent overnight. 

The latest increase is another blow to beleaguered motorists who have been facing high fuel costs for a number of months. 

AA Ireland warned drivers it was ‘inevitable’ that the dispute with Russia would bring Ireland’s highest ever fuel prices, as crude oil has soared to above $90 a barrel for the first time in eight years.

At the start of 2022, fuel prices remain close to the highest levels ever recorded.

That is according to figures recentlhy compiled by AA Ireland, which showed earlier this week that the average national price of petrol was 170.3 cents per litre, while diesel stands at 160.5 cents per litre on average.

One forecourt was selling petrol at 177.7 cents per litre today, as prices soar across the country. 

“Looking at the figures for January 2021, the average price of fuel stood at 129.9 cents for petrol and 120.8 cents for diesel. This means the price of petrol has increased by 31% in the past year, and there has been a 33% increase in the price of diesel,” says Anna Cullen from AA Ireland.

“The prices this month are on par with December 2021, with a negligible decrease of about 1%. They are down by 1.5% on November figures, when AA Ireland reported record high fuel prices,” Cullen adds.

Currently, Ireland is the 17th most expensive country in the world for fuel and we rank 12th in Europe. The most expensive countries include Hong Kong, the Netherlands, Israel, Norway, Finland, Denmark, the UK, Greece, Iceland and Sweden.

60% (two-thirds) of the price paid at the pumps is tax and this includes VAT and carbon tax. And, keep in mind it can take two weeks for any reductions to reach the pumps. 

Then, there is the cost of oil as well as production. In early 2020, members of OPEC Plus (a large group of oil exporting nations), agreed to cut output by about 10 million barrels a day (bpd) due to the lack of demand.

However, demand for oil has risen significantly and will continue to rise this year. The difficulty is that oil producers aren’t keeping up with this demand, causing prices to stay high.

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