Diesel prices at the pump have fallen to their lowest since Russia invaded Ukraine, which is rare good news as consumers grapple with a severe cost of living crisis.
Gasoline prices have fallen sharply, bringing them back to levels not seen since September last year.
Diesel prices have fallen 22 cents in the last month alone, down 11 per cent, according to the latest AA Ireland fuel survey.
Gasoline prices are down almost 10 cents in the last month, with pump prices down 17 cents.
According to AA Ireland, diesel prices are at their lowest average since war broke out in Ukraine.
Gasoline is at its lowest average price since September 2021.
When diesel and gasoline prices are combined, it means fuel prices across the state are down an average of more than 10 percent, giving motorists some respite as their spending ramps up for the festive season.
The average price of a liter of petrol is now €1.60 per litre, down 17 cents since last month and the lowest average price of petrol since September 2021.
The average price for a liter of diesel is now 1.74 euros.
Diesel prices had been rising steadily but are now also down significantly, down 22 cents a liter, or 11.3 percent, compared to November.
This is the lowest price recorded for diesel in Ireland since February this year, the month when the war in Ukraine began.
It’s a relief for motorists as heating systems work overtime during arctic weather conditions.
Many households are currently spending three to four times the average annual costs for heating their homes.
Paddy Comyn, AA Ireland’s Head of Communications, said: “These latest price cuts come at a good time for motorists, hauliers and commercial operators alike.
“There’s no firm indication of how long these prices will last, but for now they’re giving consumers a little breather against the ever-rising prices.”
Heating oil prices have also fallen again.
1,174 euros for 1,000 liters of kerosene, according to Oilprices.ie, a website that tracks prices. This is down from €1,687 in March.
But it’s far better than this time last year, when 1,000 liters cost 777 euros. This means that prices for heating oil for private households have increased by 50 percent compared to last year.
Fuels for Ireland’s Kevin McPartlan, who represents fuel suppliers, said a number of factors are working together to drive down pump prices.
The price of a barrel of crude oil has fallen sharply due to fears of a global economic slowdown.
It has fallen below $80 now from a high of around $130 in March. And the dollar has weakened against the euro. A strong dollar makes fuel more expensive as oil is priced in US currency.
Mr McPartlan said shipping costs had also fallen while the global oil network Opec+ had threatened to cut shipments but had not done so.
But he said market commentators had warned that diesel prices at the pumps could be negatively impacted by further sanctions against Russia by Western powers, due to come into force in February.
AA calculates that, on average, a diesel car will travel about 850 km on one tank of fuel, compared to 700 km for a petrol car. Therefore, although diesel is more expensive, the consumer is likely to use less of it for the same average 17,000 km per year.
Meanwhile, crude oil extended gains yesterday on supply disruptions and the easing of Covid-19 restrictions in China, the world’s largest crude oil importer.
Brent crude futures were up 64 cents, or 0.82 percent, to $78.63 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 39 cents, or 0.53 percent, to $73.56. WTI hit a low of $70.25 earlier in the week, close to the theoretical $70 buyback price at which US President Joe Biden intended to replenish US crude inventories.
Investment banks Bank of America and Goldman Sachs have warned that a successful economic reopening in China could push oil prices further above $90 a barrel, a move that would reverse the price slide at the pump.
China scrapped some of its strict Covid-19 curbs over the past week, but rising infection rates are creating uncertainty.
https://www.independent.ie/business/personal-finance/relief-for-motorists-as-petrol-and-diesel-prices-fall-to-levels-not-seen-for-months-42218139.html Petrol and diesel prices Ireland: Relief for motorists as petrol and diesel prices fall to levels not seen in months