The price of diesel has hit new highs, rising by nearly three cent per litre in the last month, according to figures published today.
The figures compiled by AA Ireland show that a litre of diesel now costs an average of 124.6 cent and a litre of petrol 120.7 cent, up by 0.5 cent since a survey in March.
The price of diesel is a particular worry for motorists, who are increasingly purchasing diesel-powered cars ahead of the new tax regime due to come into effect in July.
Under the scheme, diesel cars will attract reduced car tax and Vehicle Registration Tax (VRT) to encourage greener motoring.
The price rise is also a major concern for hauliers, according to AA Public Affairs Manager Conor Faughnan.
“This is yet another rise in diesel prices and it takes them to yet another new high,” he said.
“This is a serious concern for hauliers and business but also for the rapidly growing numbers of private motorists who are choosing diesel because the new tax system favours the cleaner fuel.”
He said prices were generally rising in response to continuing high oil prices.
“Oil is up about 10 per cent since the start of the year. But over the same period the euro is up by some 8 per cent against the dollar. The real mystery is why diesel is rising faster than petrol.”
Part of the explanation may be reduced consumer demand for petrol in the US, where stocks are plentiful at the moment.
“But it is a change from the usual seasonal pattern and we normally see diesel falling in price at this time of the year. Unfortunately there is no short term prospect of that at the moment,” Mr Faughnan added.
He said cold weather on the east coast of the US and a continuing shortage of stocks in Europe meant most forecasters expect the difference between petrol and diesel to grow.
“There is a serious concern in the consumer’s mind that diesel is going up just when we are all being incentivised to buy diesel cars.” Mr Faughnan added.
