The AA Ireland say they believe that the recent rise in petrol prices is here to stay for the long term.
The company made the claims after latest figures show that lower prices which were around at beginning of this year have long since disappeared. The AA say petrol prices have steadily continued to rise through the month of April, with the average price being around €1.39 a litre, three cent dearer than the month of March, and 10 cent more than the month of February.
The company also say that diesel prices are on the increase across the country, with the average cost of €1.30 a litre, which is up more than eight cent for the month of February. Executive at the AA Ireland Conor Faughnan says he believes that there are two major reasons why we’re paying more at the pumps.
Mr Faughnn says:”In January, oil stopped falling, was the first thing that happened, and it’s actually gone up a little bit – it’s about $55 per barrel now, there, thereabouts,” he said. “So we ceased getting that benefit. “And the other big thing of course is that the euro has dropped fairly dramatically in value against the US dollar. He added: “So in July of last year, a euro got you $1.36, it’s now $1.06, that’s a 21% drop in the value of the euro.”