Petrol prices set to rise
Petrol prices are set to rise again at the pumps
Although crude oil costs are lower than they have been for years, fuel prices at the pumps are set to rise.
The average Irish driver has been paying around €40 less per month on petrol or diesel in the past while but some petrol retailers have decided to put up their prices regardless.
They are claiming that the price hike can be blamed on a weak euro conversion rate against the dollar. Accordingly, they are telling motorists to expect to pay between 2c and 3c more at the pumps in the coming weeks.
You might want to fill up on your way home.
The cost of petrol and diesel is expected to rise through December. This is also directly related to the cut in oil production, announced at the end of November by the Organization of the Petroleum Exporting Countries (OPEC).
Oil prices have soared due to the cut in production by Opec. This is the first time in eight years that the Opec countries have cut a deal to slash production. Immediately, Brent crude oil went up by more than 7 per cent to €50.87 a barrel.
The oil producing countries making up Opec, said they would reduce production by around 1.2 million barrels a day to a total production of 32.5 million barrels per days from January 1, 2017. Brent crude prices have fallen nearly 50% since their peak of around 100 US dollars a barrel in June 2014.
Russia, a non-Opec member and one of the biggest oil producers in the world has already thrown its weight behind efforts to tackle the growing global supply glut in oil. They are slashing their oil production by 300,000 barrels a day.
A mid-month cut in prices, by supermarkets, led to around 2p being taken off the price of both petrol and diesel nationally, and other retailers cut their prices too.
An RAC fuel spokesman in the UK, Simon Williams said: “Given retailers were relatively slow to pass on wholesale price savings to motorists last month, despite the RAC’s calls for a cut, we will be monitoring closely to see if forecourt prices now rocket as a result of the recent leap in the price of oil.”
Let’s just hope we don’t see ourselves paying over €1.70 per litre… again.