26 May 2011

Petrol prices rise again, diesel holds steady

The latest AA Monthly index of fuel prices show that petrol rose yet again, rising by 2.6 cent to reach another record high at an average of 153.3 cent per litre. Diesel fared better, even falling very slightly to 146.0 cent on average, down 0.3 cent.

Conor Faughnan of the AA says "The combination of oil prices, currency fluctuations and the price of wholesale product has played against us once again, pushing up our cost of living in a way that affects almost every family in the country.

"Seeing petrol rise in price faster than diesel seems a little strange but that is often the case at this time of year. Nevertheless, the price of both fuels remains stubbornly high."

The latest petrol price rise means that the cost of a month's fuel for a typical motorist is now €229.95 (based on 12,000 miles per year at a fuel economy rate of 30 mpg, typical for a mix of urban and rural driving).

Diesel is now the fuel of choice for new cars, with over 70 percent of new passenger car sales this year, but the majority of private cars (over 60 percent) still use petrol, and this gets higher for older vehicles.

For diesel users, the AA warns drivers to buy their fuel sensibly and to take care not to buy what looks like very cheap fuel as it may well be too good to be true.

Faughnan advises to go to reputable garages and buy sensibly. "If you buy fuel very cheaply from a farm gate or some other irregular outlet, it is entirely possible that you could be buying laundered fuel. Quite apart from the legal consequences - a fine of €5,000 is possible - you may damage your engine resulting in a costly repair.