THE COST OF a litre of fuel in Ireland has fallen dramatically in the past month according to figures released today, with the coronavirus pandemic and a significant drop in crude oil costs among the factors behind the drop in price.
A litre of petrol now costs 126.5c on average – a decrease of over 15 cent compared to last month’s average price of 141.9c, according to the AA’s latest monthly study of fuel prices across the country.
As a result of the drop, the cost of a litre of petrol is now at the lowest level recorded since April 2016.
The cost of a litre of diesel fell by over 16 cent in the past month to a current level of 116.9c. This means that diesel prices are now at their lowest rate since September 2016, according to the AA’s figures.
The fall in pump prices comes in the midst of a significant drop in the cost of crude oil as demand for oil has fallen in several countries amid the Covid-19 pandemic.
The price of a barrel of Brent crude oil has fallen from slightly under $65 (about €60) in mid-January to the mid to high $20s (€20-something) currently.
Conor Faughnan, AA Director of Consumer Affairs, said the significant drop in pump prices is “a welcome development for motorists across the country – particularly those who may be more reliant on their car currently than they ordinarily would be”.
“As many people are facing financial uncertainty during the current coronavirus outbreak, anything which will help reduce their outgoings is good news.
“While the impact of the coronavirus on oil prices is likely to be reversed at some point in the future, the steps being taken by Saudi Arabia are likely to have a longer-term role in affecting crude oil and pump prices,” Faughnan added.
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