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AA: Clarity needed on fuel prices

The AA has called for clarity on upcoming fuel price hikes in Ireland.

The AA has called for clarity from the government surrounding the reintroduction of duties on petrol and diesel which were temporarily axed last year amid soaring prices.

Although fuel prices in Ireland currently remain relatively stable at an average of €1.65 and €1.68 for litre of petrol and diesel respectively, price hikes are likely on the way in March following not just the EU-wide ban on the importation of Russian oil which went into effect earlier this month, but also the government's plan to reverse last year's cuts on fuel duty.

The proposed return to higher fuel duties would see petrol prices increase by 15c per litre and diesel prices by 20c. According to the AA this would likely make the average tank of fuel around €10 more expensive.

Lack of info on E10

The AA, however, says that communication regarding planned price rises has been sorely lacking and that the government urgently needs to address the dearth of information, not just regarding fuel duty, but also the scheduled introduction of E10 fuel later in the year.

"We will soon see the introduction of a new fuel blend to Ireland, E10, and we have been told nothing about its introduction," said AA Ireland's Paddy Comyn.

"A recent AA Ireland Twitter account survey showed that 91 per cent of respondents had never heard of the fuel."

E10 is a type of petrol containing a higher percentage of plant-based bioethanol than the E5 petrol currently in use, meaning that it's theoretically greener than presently-used fuels. Although the government's most recent Climate Action Plan calls for the introduction of the fuel in "2023", the specifics of the introduction are currently non-existent.

Potential for UK-style chaos

The AA cautioned that unless the government reintroduced the higher fuel duty rates on a phased basis, Ireland could see scenes of chaos similar to those seen in the UK last year where panic buying lead to shortages, lengthy tailbacks and even scenes of violence at petrol stations.

"Also, we need clarity around the possible switching off the excise duty reductions overnight will inevitably lead to anxiety leading up to the end of February, which could lead to tailback filling stations or pumps running dry in certain areas. A more prudent approach would be to stagger this over two to three months," said Comyn.

Pleasant surprise unlikely for motorists

The Cabinet is due to sign off this week on the latest round of measures aimed at addressing the cost-of-living crisis. Little is yet known about what the upcoming package will entail, however it is expected that it will not be as expansive or far-reaching as that announced last year which saw households given significant energy credits as well as one-off payments to those in receipt of social welfare. With wholesale oil and energy prices currently well below those seen in the immediate aftermath of Russia's invasion of Ukraine, it currently looks unlikely that motorists will be given a reprieve with the announcement of the latest suite of measures, though for now detail is lacking.

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Published on February 20, 2023