There have been renewed calls for a cut to fuel excise as motorists queued at forecourts where the price of a litre of petrol fell below the €2 mark on Tuesday.

Hard-pressed motorists flocked to take advantage of cheaper rates amid fears that fuel costs will soon soar even higher.

Motorists queued for more than 20 minutes to avail of the cheapest petrol and diesel in the country, as word got out that prices for petrol and diesel had dropped to €1.99 a litre at stations in Cork, Monaghan and Carlow.

And the Government's tax take - now almost €1 on every litre - has led to renewed calls for a fresh cut to fuel excise. Oil prices fell sharply yesterday, but the US Treasury has warned that the price of oil could surge by 40% to $140 per barrel if a price cap on Russian oil isn't put in place.

The volatility in the market, brought on by Russia's invasion of Ukraine, means there is little prospect of long-term reductions for those feeling the crush of the cost-of-living crisis.

In Association with

This has led to renewed calls for the Government to take decisive action and reduce high levels of tax at the pumps.

The AA said the public should take advantage of reductions while they can, as retailers will struggle to sustain them, because of high taxes and duties.

"Petrol prices are starting to settle slightly and we are seeing prices dropping a little across the country," spokesman Paddy Comyn said.

"Some retailers are now offering lower prices and consumers lucky enough to be able to avail of these prices should do so.

"It is a great opportunity for some retailers and they will certainly be busy as can be seen from reported queues. But they might not be able to sustain this for long, as we are aware that petrol retailers tend not to make much from fuel due to the high taxes and duties on them here in Ireland."

Political pressure is growing on the Government to take measures to address the fuel cost crisis. In the Dáil yesterday, Sinn Féin leader Mary Lou McDonald raised an Irish Daily Mail report that teachers are fleeing Dublin due to rocketing rents.

She said the problem is being exacerbated by the cost of fuel because those who commute to the capital can no longer afford to fill the tanks in their vehicles.

"The teachers' unions are alarmed. They say that difficulties with teacher supply are made worse by the fact that teachers cannot set up home in this city," she said.

"They say teachers who commute to Dublin are now considering working elsewhere because of the soaring cost of fuel."

Independent TD Richard O'Donoghue said the Government was not doing enough to reduce fuel prices, especially for rural voters.

"The fuel decrease is welcome but it is still not enough. Taxation is still 49% on the price at the pump. The Government should cap the price of fuel.

"The Government is taking almost €1 per litre on fuel. They've taken €6 billion in fuel duty in 2022. In 2020 they took €2 billion.

"I have no confidence in this Government. It's a city-based Government. None of them see the transport issue."

People on low incomes who live in rural areas are disproportionately affected by fuel increases, a recent report by Grant Thornton found.

People Before Profit TD Paul Murphy yesterday called for the Dáil recess - due at the end of this week - to be delayed until measures to address the fuel crisis are implemented.

He said: "It is proposed that we rise on Thursday, July 14 and the Dáil will not sit again until Wednesday, September 14... That is more than eight weeks at a time when people's incomes are effectively being eroded, day after day. The Dáil should not rise until it addresses this crisis."

Patrick Hurley, manager of Hurley's Texaco petrol station on Model Farm Road in Cork, said he reduced prices to help people who were struggling.

"People are struggling in every aspect of life. The people of Cork have been very good to us over the years and we wanted to give back."

Prices in Dublin did not decrease as much yesterday, with the average tank of petrol costing more than €103 as the price per litre stayed at €2.06.

According to the fuel price tracking website Pumps.ie, average prices on Monday were €2.11 for petrol and €2.09 for diesel.

The average price of fuel across the EU dropped this week to €1.97 for diesel and petrol.

Irish prices remain some of the most expensive in Europe with prices consistently reaching over €2 at the forecourts.