Petrol prices surpassing €1.50-a-litre a ‘major shock’ says IRPA
As petrol prices soar, many petrol stations can no longer afford to fill their tanks fully because this costs €54,000 each time.
16 March 2011
The overnight petrol price increase at the start of this month – which caused consumer prices to smash through the €1.50-a-litre barrier, will cause many motorists to put off unnecessary journeys, says the Irish Petrol Retail Association (IRPA).
One petrol wholesaler quoted in the Irish Independent, said that while forecourt prices had recently averaged €1.47 to €1.48, that this has now surpassed €1.50 in many areas, due to surges in the price of oil amid political upheavals in the Middle East.
IPRA chief executive Michael Griffin said: “Motorists are already cutting down on fuel purchases after all the recent increases, so this is bound to have a major impact.
“When petrol prices went over €1, that was a shock, so there’s no doubt people will find €1.50 a major shock.”
He added that the incoming government should cut excise on fuel, as the levy swallows 70% of the final price at the pumps.
The fact filling stations had a very low margin on fuel prices, was also noted by the association. Griffin highlighted that a study by the National Consumer Agency (NCA) showed there was no profiteering in the struggling sector, as reduced demand also hit sales of food and other products in service station shops.
In fact, many stations could not even afford to fill their tanks fully because this costs €54,000 each time.
According to The AA, oil prices recently soared as high as $120 a barrel as a result of the unrest in Libya, but the good news was that they had stabilised and even fallen a little, rather than continuing to soar.