Fuel prices up on last month as potential OPEC agreement looms

Within the last month the price of a barrel of oil has increased by almost $10

The average price of petrol rose by 1c, and diesel by 1.3c in the last month, according to the latest AA Fuel Price Index.

The average price of a litre of petrol now sits at 131.4c per litre, with a litre of diesel costing an average of 121. Petrol now costs 10.3c per litre more than this year’s low of 121.1c seen in March, while the average price of a litre of diesel has increased by over 15c compared to the 2016 low of 105.4c per litre in February.

“While the month-on-month increase may not appear too significant, it certainly appears that the dip in fuel prices seen earlier this year has come to an end and based off the current trend it may be quite some time before we see prices drop again," Conor Faughnan, Director of Consumer Affairs at AA Ireland said.

Within the last month the price of a barrel of oil has increased by almost $10.00 and following an OPEC agreement to temporarily reduce oil production further increases may be on the way. A weaker Euro also counts against motorists in Ireland.

“We can be confident about short term trends in fuel prices because we know the key factors – the oil price, the dollar vs euro exchange rate and European wholesale prices", he added. "Unfortunately all of those indicators are currently pointing in the wrong direction for motorists so the signs are not good.

"Whether that trend continues as we get into 2017 is something we don’t know but prior years tell us to expect volatility."