Updated: 18/08/12 : 07:50:06Printable Version
Petrol prices are expected to hit an all-time high next week with the cost of filling a modest family car reaching 85, an increase of 2.50.
AA Ireland is warning that petrol prices will increase to 1.70 per litre for petrol and 1.60 for diesel, although prices will vary slightly across the country.
According to the AA, the cost of filling a 50-litre tank in a family car will be 85 for petrol and 80 for diesel a price hike of between 2 and 2.50.
An increase in the global demand for oil has been putting upward pressure on refined product prices, and this has not been aided by the declining value of the euro against the dollar.
One industry source said: "The current upward price pressure is due to factors beyond the control of retailers who would prefer to see prices fall to more affordable levels."
He claimed the main reason for higher prices was the Governments decision to increase taxation and Vat in the past three years.
AA Ireland director of policy Conor Faughnan said: "We could be looking at a 4c-5c per litre increase next week so it is a pretty severe one. Four cent is an extra 2 on a fill and 5c would be an extra 2.50. Four cent might not appear to be an awful lot but it has been death by a thousand price rises, with the cost going up and up over the last 12 months."
Mr Faughnan said a combination of "super taxes" on fuels coupled with a rise in the cost of oil and a fall in the value of the euro was pushing prices to the highest ever.