In recent weeks, fuel prices have steadily increased across the country with some petrol stations charging more than €1.70 per litre of petrol and €1.60 per litre of diesel.
This is the highest that prices have been in almost ten years and is associated with a global shortage of supply.
A barrel of crude oil is now $85 (€73) which is a significant increase from April 2020 prices where a barrel cost $16 (€14).
The rise in prices has also not been helped by the Budget’s increase of 2 cents a litre on petrol and 2.5 cents a litre on diesel.
Combining this with the carbon tax, fuel prices are facing dramatic increases across Ireland.
AA Ireland’s Anna Cullen has revealed that the price of petrol and diesel has been on a steady rise of about 1 cent per litre a week at the pumps and it looks like this will continue in the short term.
She added, “Demand for oil dropped considerably during the Covid pandemic, which had a devastating impact on oil production as demand for the product dropped, and so consequently did supply,”.
She said that society is now back up and running with traffic resuming to pre-pandemic levels, however, supply has not resumed as quickly as demand.
The Organisation of the Petroleum Exporting Countries (OPEC) has released an outlook report in regards to oil supply, which stated that oil supplies would exceed 2019 levels but not until the year 2023.
A rise in fuel prices is expected in the short term as the shortage of supply continues across the world.
IMAGE (right) – “Minister for Communications, Energy and Natural Resources Eamon Ryan” by The Green Party / Comhaontas Glas is licensed under CC BY-ND 2.0