Relief for motorists as fuel prices stabilize and petrol prices fall to €2 per litre

There is rare relief for motorists as industry experts say fuel prices have stabilized after falling to their lowest levels in months.

It is now hoped that reduced volatility in energy and fuel markets will help quell the rising inflation that has rocked both businesses and consumers this year.

That Irish Independent show that the national average is €2.01 for petrol and €2.01 for diesel, according to AA Ireland’s latest fuel survey.

However, national prices have been recorded as low as 1.89 euros for petrol and 1.90 euros for diesel, the first major drop since the outbreak of war in Ukraine.

Irish consumers have been struggling with rising inflation for months, and not just at the pumps.

Prices in Ireland as a whole rose 9.6 per cent in the year to July 2022, according to the EU’s Harmonized Index of Consumer Prices (HICP) figures released yesterday. This surpassed the average of 8.9 percent for the entire euro zone.

In the past year, the price of diesel has risen by an unprecedented 41 percent, while the price of gasoline has risen by 30 percent. Within days of its introduction in March, the government’s excise duty cut of 20 cents per liter of petrol and 15 cents per liter of diesel was scrapped.

Fuel prices across the country have remained volatile since Russia’s invasion of Ukraine, but the seemingly endless price jumps are now stabilizing, according to industry experts. While prices remain high, motorists can take comfort that they have come down in recent weeks and fewer shocks are now being forecast.

Fuels for Ireland CEO Kevin McPartlan said the market had entered a period of stability following the turmoil caused by the Russian invasion.

“In the past, some of the increases have been based on uncertainty about the sanctions imposed on Russia and fears that Putin may cut supplies entirely,” he said. “There has also been a slight increase in global production, which has also stabilized supply.

“And the global market has adapted to the new circumstances of no longer being dependent on Russian oil in Europe.

“But the most important thing that has affected prices now is that all the market shocks have led to changes.

“It meant people had to buy from suppliers they wouldn’t normally buy from and choose shipping routes they wouldn’t normally do.

“These things have settled in now. It’s a bit more “business as usual”. People know where they stand. Every market hates uncertainty. We are entering a period of stability where such wild swings should not exist.”

As fuel and energy prices stabilize and even fall, it is hoped that other goods and services across the board will follow.

In terms of inflation in general, the HICP showed that energy rose 50.4 percent in the year to July but fell 1.6 percent in the month. If fuel and energy prices continue to fall in the coming weeks, let’s hope we’re past the peak of inflation.

AA Ireland’s Anna Cullen said while the overall news is positive, motorists remain under pressure.

“We’ve seen a slight drop in fuel prices lately. Gasoline now averages 200.3 cents a liter nationally, with diesel at 201.8 cents a liter,” Ms Cullen said.

“In June, petrol prices were 213.2 cents per liter and diesel 205.0 cents per liter. The market has stabilized somewhat in recent weeks and supply is good at the moment.

“We hope that this price drop at the pumps will continue. However, it is difficult to predict at this point. Current average prices are still the highest we’ve seen since we started in 1991.

“If you compare them to the same period last year, petrol prices are up 30 percent while diesel prices are up 41 percent.

“Compared to last year, it now costs €595 more to fill up an average petrol car for the year and €610 more to fill up a diesel car. If you look at current prices, filling up an average petrol car will cost you around €100 and filling up a diesel vehicle will cost you €101.

“We have stated on several occasions that prices are hitting everyone hard, but especially people in rural areas who have no alternative options.” Relief for motorists as fuel prices stabilize and petrol prices fall to €2 per litre

Fry Electronics Team

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