IRELAND: Fuel prices have stabilized and petrol prices have come down to €2 per litre

Dublin: There is rare relief for motorists as industry experts say the price of fuel has stabilised after dropping to its lowest level in months.

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

The national average for petrol is €2 and €2.01 for diesel, according to the latest AA Ireland fuel survey.

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

Irish consumers have been struggling for months with skyrocketing inflation, and not just at the gas station.

According to data from the EU Harmonised Index of Consumer Price (HICP), which was issued yesterday, prices in Ireland as a whole increased by 9.6 percent in the year ending in July 2022. This was higher than the eurozone average of 8.9 percent.

Diesel prices have increased by an astonishing 41 percent over the past year, while gasoline prices increased by 30 percent. The government's excise cut of 20c per litre on gasoline and 15c on diesel was eliminated just days after it was implemented in March.

Since the Russian invasion of Ukraine, fuel prices have continued to fluctuate across the nation, but experts in the business say the seemingly constant price increases are gradually levelling off. While costs are still high, drivers might find solace in the fact that they have decreased recently and fewer surprises are expected now.

After the upheaval brought on by the Russian invasion, the market has entered a time of stability, according to Kevin McPartlan, CEO of Fuels for Ireland.

"In the past, some of the rises were based on uncertainty regarding the sanctions placed on Russia and fears Putin could cease supplies totally," he said. Additionally, there has been a minor rise in worldwide production, which has stabilised supply. Additionally, the global market has changed to reflect the new reality of Europe's lack of reliance on Russian oil.

"But the most significant factor that currently has an impact on prices is the transformation that all of the market shocks have brought about.

"It meant people had to source shipping routes they wouldn't often get shipment from and had to buy from suppliers they wouldn't ordinarily buy from.

"Those things are now starting to take hold. More "business as usual" has returned. People are aware of their positions. Uncertainty is hated by all markets. As an era of stability approaches, there shouldn't be such erratic variations.

It is envisaged that more commodities and services will follow as the price of fuel and energy stabilises and even declines.

According to the HICP, energy prices increased 50.4 percent year over year through July but decreased 1.6 percent during the same period. It is hoped that if fuel and energy prices continue to decline in the upcoming weeks, we will pass the inflation high.

While the news is generally good, according to Anna Cullen of AA Ireland, motorists are still under pressure.

"Recently, fuel prices have dropped little. According to Ms. Cullen, the national average price for gasoline is currently 200.3 cents per litre, while the price for diesel is 201.8 cents per litre.

"The cost of gasoline was 213.2 cents per litre in June, while the cost of diesel was 205.0 cents per litre. Recently, the market has stabilised a little bit, and supply levels are good right now.

"We anticipate that the price decline at the pumps will continue. At this point, it's difficult to forecast, though. Since we began keeping records in 1991, the average costs are still at their highest level right now.

"Petrol prices have grown by 30% while diesel prices have increased by 41% when compared to the same period last year.

"In comparison to last year, the average petrol automobile now costs €595 more to fill up for the year, and a diesel car now costs €610 more. According to the current rates, it will cost you approximately €100 to fill the tank of a typical gasoline vehicle, and it will cost you approximately €101 to fill a diesel vehicle.