Petrol prices have dropped by about 5 per cent across the State, bringing them close to their level of a fortnight ago.
But motorists have been warned not to expect any further slippage in prices as international crude oil costs remain stubbornly high following Hurricane Katrina. Several petrol stations this week slashed their prices by up to nine cent a litre for unleaded.
The price of diesel has also been cut dramatically, in some garages to pre-September levels.
According to the AA, however, the average price for a litre of unleaded remains about four cent ahead of the August mark.
Conor Faughnan, AA public affairs manager, said the average price hit almost €1.18 a litre last week. "Anecdotally, we are hearing that it has fallen back about 6 cent per litre to roughly €1.12."
He said fears of prices stabilising around €1.30 a litre for unleaded were unfounded, adding motorists had been due a saving thanks to a drop in international oil prices some weeks ago.
"When world oil prices go up or down we tend to see the effect at our pumps about four weeks later. That was the case here. The drop in price is not unprecedented. It is not unexpected either."
US oil prices fell below $64 a barrel yesterday from a record high of $70.85 on August 30th, a day after Hurricane Katrina hit the Gulf Coast, toppling oil platforms and shutting down refineries.
Maxol this week reduced its wholesale price per litre of unleaded to €1.20, including VAT, from an all-time high of €1.33 on September 3rd. Other distributors that have not yet lowered their prices are expected to do so this weekend.
