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Petrol and diesel sales drop despite falling pump prices

Petrol Prices
/ 8th December 2022 /
Christian McCashin

Petrol and diesel sales have plummeted below pre-pandemic levels, new figures show.

The 11% drop in diesel use in October compared to a year earlier - and 8% lower compared to pre-pandemic 2019 - has been attributed to more people working from home, an increase in electric cars, and cheaper public transport.

There were 79 million litres of petrol sold in October, a 6% drop from a year ago, and 10% lower than in October 2019 before the pandemic, according to the Central Statistics Office figures.

Sales of home-heating oil in October were 29% lower than in 2021 and the lowest for the month since 2005. The figure was pinned on the mild weather so far this autumn.

Petrol currently costs around €1.60 a litre and diesel €1.72. Prices for both topped €2 a litre in June and July before falling back in August.

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The Government cut excise duty on petrol by 20c and diesel by 15c in April to ease the soaring cost.

No date has been set for when the duty will be reinstated but it is expected to be some time in the spring. Kevin McPartlan, of Fuels for Ireland which represents the major oil suppliers, said: "The minor reduction in diesel and petrol sales reflects general concerns around the cost of living. High mileage motorists tend to drive diesel cars and they are least likely to switch to electric vehicles - hence the more pronounced drop in petrol sales compared with diesel.

"Sales of kerosene for home heating are heavily influenced by weather, and the mild temperatures we have experienced until recent days meant demand was low."

The 20% cut in public transport fares - rail, bus, Dart and Luas - in May until the end of the year may also have been a factor too in the fall in fuel sales, said Green Party TD Brian Leddin. He said: "The weather has been incredibly mild so people are driving less and it's easier to walk and cycle in decent weather."

Petrol and diesel sales
"High mileage motorists tend to drive diesel cars and they are least likely to switch to electric vehicles - hence the more pronounced drop in petrol sales compared with diesel," according to Kevin McPartlan of Fuels for Ireland.

He added: "The increase in electric vehicle sales, that's a factor. Anecdotally, I use public transport a lot, inter-urban Limerick to Dublin, and the trains are so busy now. There was a step-change visibly when the fares were reduced, so that could be a factor as well. But it's good news and from a climate point of view it's absolutely good news."

However, he also pointed out: "It's given us another problem of course: we don't have the capacity and we can't build the capacity quickly enough to increase the services. But that's a good problem to have. There has been a pro-car policy for the last 60 years, but in terms of population growth there was always going to be the need for some kind of mass transit."

Statistician Paul McElvaney, of the CSO's Environment and Climate Division, said: "At 298 million litres, clearances of auto diesel in October 2022 were 11% lower than in October 2021, and were 8% lower than in October 2019.

"At 79 million litres, clearances of petrol in October were 6% lower than in October 2021, and were 10% lower than in October 2019.

"Clearances in October of kerosene, mainly used as a home heating fuel, were 29% lower than in October 2021."

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