Prices at the pump see unexpected fall in September – AA Ireland
Petrol prices fall to lowest for three years
Both petrol and diesel prices fell by around seven cent in September, the latest figures from AA Ireland show
After the reinstatement of excise duty on August 1, fuel prices were expected to continue to rise but the latest figures from AA Ireland show that prices at the pump actually fell in September.
AA Ireland’s latest fuel price survey shows that petrol prices dropped by seven cents to an average of €1.74 per litre, while diesel prices were also seven cent lower at an average of €1.67 per litre.
Crude oil prices continue to fall to around $72 a barrel.
AA Ireland also said that electric vehicle owners can expect to pay an average of €857.77 a year to cover the national average of 17,000 km per year, which is a reduction of €58 a year this month.
Jennifer Kilduff, Head of Marketing & PR for the AA Ireland, said that September was a good month for all motorists.
“Petrol and diesel prices on average have decreased this month, perhaps as a result of crude oil prices falling. The EV driver is also winning this month with the average monthly charging costs reducing,” she said.
“Further reductions are expected from November 1 with Electric Ireland announcing they will be cutting some of their rates. Hopefully, these small wins will not be offset by any budget measures,” she added.
Lower global oil prices
Lower global oil prices and a stronger pound were the main reasons prices had fallen, the motoring group said.
The figure is considerably lower than in July 2022, when petrol prices hit a record high of almost £1.92 per litre when oil prices surged following Russia’s invasion of Ukraine.
Simon Williams, fuel spokesman for the RAC, said petrol prices could fall further.
“We believe there is scope for pump prices to come down further in the next few weeks to reflect the lower wholesale costs retailers are paying when they buy fresh fuel stocks,” Mr Williams said.
Depending on where drivers were filling up, he said people could be “paying as little as £1.26 for a litre of unleaded – making the cost of refuelling a typical family car come in at under £70”.
The average price of diesel is around £1.41 per litre which is also close to a three-year low, based on data from the Competition and Markets Authority (CMA).
The falling price of fuel will come as a boost to drivers, who have been hit hard in recent years by higher prices for all consumer goods.
The RAC has been critical of retailers, claiming that they have failed to drop prices as swiftly as they should have as wholesale costs have fallen.
Concerns over fuel prices prompted the competition regulator, the CMA, to look into the sector.
It said in July weakened competition in the fuel sector was impacting drivers’ wallets and that supermarkets’ profit margins.
The Petrol Retailers Association (PRA), which represents independent forecourts, has argued its members’ margins have been “under pressure” due to higher labour and energy costs, and reduced sales.
