AA Ireland has today warned that the cut in excise duty on petrol and diesel won’t be enough to help motorists avoid paying huge petrol and diesel prices in months to come.
Over recent months, the cost of both fuels at pumps nationwide has been on the rise due to a lack of supply, and at this point are at the highest level on record.
Most stations are now recording an average cost of €2 per litre.
Sinn Féin leader Mary Lou McDonald said on Tuesday that the price of petrol had gone up by 70 cent per litre since January 2021.
As well as this, the price of home heating oil has doubled in the same period of time, placing intense pressure on Irish pockets.
"These fuel hikes are not sustainable for any individual, family or indeed any small business," she said.
Today the Dail passed proposals by the Department of Finance to cut excise duty by between 15 and 20 cent per litre of diesel and petrol.
Most average cars can carry between 45 and 65 litres, meaning drivers could save between €9 and €13 per full tank with that.
However, recent AA Ireland figures show that the average motorist in a petrol car would spend almost €2,500 per year to run their car at current fuel prices - €1,000 more than in 2020.
The cuts have been welcomed across the board, and are likely to save the average motorist around €240 per year at this point, but experts are warning it may not be enough in weeks to come as the cost of a barrel of oil continues to rise.
AA Ireland Head of Communications, Paddy Comyn said: “While we welcome any measure to reduce the price of petrol and diesel, and the assurance that this will remain in place until the end of August, this is unlikely to see us avoid further record petrol and diesel prices in the short-term as the price of a barrel of oil continues to increase and wholesale prices for petrol and diesel increase accordingly.”
