The average price of a litre of unleaded petrol in the west of Ireland is 90 cent while on the east coast and in the south it is as low as 79 cent, according to the latest survey undertaken by the chairman of the Consumers Association of Ireland, Mr Michael Kilcoyne.
He is calling for an inquiry into petrol prices nationwide by the Competition Authority and by the director of Consumer Affairs in light of the price differences discovered. "In the east and in Kerry where Tesco has begun selling petrol, the petrol prices have decreased, and where this level of competition is not available petrol prices are increasing," he argues.
"It makes no sense that the consumer should be paying more for petrol in a time when the dollar has dropped in value by 25 per cent against the euro. Why is that significant drop not reflected at the petrol pump?
"The dollar is the currency used for the purchase of oil from OPEC countries and you can be sure that had the euro dropped against the dollar that the Irish consumer would immediately be paying an increased price as a direct result, however, the opposite has not happened.
"A five cent increase in the price of a litre of petrol was applied at the pumps in the wake of last month's Budget, and that increase is already being charged to consumers," he said.
"I have been investigating the cost of petrol across the country and it is 11 to 12 per cent cheaper to buy petrol on the east coast and in Kerry than it is to buy it in western counties or in the Midlands. Tesco has opened three petrol stations in Dublin and one in Kerry and it's obvious that to match Tesco prices, at 79 cent a litre, neighbouring petrol outlets have also had to drop their prices to survive.
"A very serious question has to be asked as to how Tesco can sell petrol at 79 cent a litre and still make a profit, when in other places across the country the same petrol is almost 90 cent a litre? I'll be raising my concern with the director of Consumer Affairs and with the Competition Authority and will be asking both to investigate the situation," Mr Kilcoyne said.