There has been a small drop in fuel prices according to AA Ireland.
Diesel and petrol have dropped significantly in price compared to the start of the year
While most people are currently locked away at home aside from essential journeys, those who must travel more frequently will welcome the fact that fuel prices have remained low at the end of the first quarter of 2020.
According to the AA's latest fuel price study, the cost of a litre of both fuels has remained largely unchanged since March. Petrol has increased slightly by 0.4c to a current price of 126.9c per litre, with diesel remaining flat month-on-month at 116.9c.
However, both fuels have dropped significantly in price compared to the start of the year, when a litre of petrol cost 144.5c, with diesel costing 135.9c on average.
“Ultimately we are in an unprecedented situation currently, with the restrictions leading to significant reductions in traffic volume. Ordinarily, Easter weekend would have seen a massive number of people undertaking journeys across the country to visit friends and family or escape for a brief break with their loved ones, but the COVID-19 restrictions have meant we are all spending less time in our car than we would have imagined at the beginning of the year. For those who must travel, for example healthcare workers, the fact that fuel prices have remained low is to he welcomed,” Conor Faughnan, AA Director of Consumer Affairs stated.
“Truth be told is that we are in a period of great uncertainty and the only thing we truly know is that we know nothing about what the economic situation will look like in the weeks and months ahead. This instability and decrease in demand is likely to have an impact on fuel prices moving forward as we come to grips with the global Coronavirus crisis.”
In recent weeks crude oil prices have bounced back slightly from the lows seen in mid-March. Early last week, Brent Crude Oil was trading at approximately $35 per barrel as prices increased ahead of an expected OPEC decision to cut oil supply. Despite the increases in crude oil costs, the AA reaffirmed that this should not lead to significant changes at the pump.
“Crude oil accounts for about 20-25% of what we pay at the pump for a litre of fuel, with the rest consisting largely of taxation. While a jump of $10 in crude oil prices could lead some to worry about a surge at the pumps, we need to remember that oil prices are still significantly low the levels of $60-$65 per barrel that we were seeing in 2019 and early 2020,” Faughnan added. “The long-term future of where prices are heading remains unclear and really won’t start to reveal itself until we have a full understanding of the extent of the economic damage caused by COVID-19, but in the short-term we can expect prices not to deviate too much from where they currently are if all other things remain equal.”