Prices at the pumps decreased slightly during the past month. That is according to the latest fuel price survey from AA Ireland.

Petrol now costs on average 162.0 cent per litre which is down 0.1 cent since March. While the price of diesel fell more sharply down 2.7 cent to an average of 153.8 cent per litre.

Declining oil prices on world markets and the strength of the Euro against the US dollar are said to be contributing factors to the drop in fuel prices.

Impact of taxes

The AA points out that while oil prices tend to grab people’s attention they are not as big a factor as local taxes in the price that Irish drivers pay. Through a combination of excise duties including carbon tax and VAT, it says over 57% of the price of both diesel and petrol is tax.

The body says a typical Irish car will use 1,800 litres of fuel annually or 150 litres per month. At current prices that means drivers will pay €243 this month for petrol of which €138.50 is tax.

Director of Consumer Affairs with the group is Conor Faughnan. He says this downward trend on fuel prices is set to continue and expects prices will fall even further.