AA IRELAND is warning motorists of “very significant price rises” for petrol in the coming fortnight, with prices possibly hitting a record €1.70 a litre over that period.

Conor Faughnan, AA Ireland’s director of policy, told the Marian Finucane programme on RTÉ that industry sources were indicating a serious hike in petrol prices due to the rising global demand for fuel.

However, Faughnan said that the level of “super-taxes” imposed on fuels in Ireland is the single biggest factor in high petrol prices here.

Faughnan said that petrol price variations between countries was down to different tax systems. “A tax-free litre of petrol would cost somewhere between 75 and 80 cent a litre,” he said, adding that oil barrel prices and currency fluctuations “really only affect a portion of the pump price – the great wedge is tax.”

“If you’ve got super-taxes, and rising oil prices, and a fall in the euro, it’s that combination that is likely to see us paying €1.70 a litre.”

He suggested the price problem could be alleviated by cutting the taxes imposed on fuel in Ireland.

According to the latest prices on Pumps.ie, petrol prices around Ireland currently range from around €1.60 a litre upwards. AA Ireland figures show the average price for unleaded petrol in Ireland is €1.63 a litre and €1.54 a litre for diesel.