Petrol prices have fallen for the first time in nine months since the Russian invasion of Ukraine – but motorists will see any savings wiped out by toll prices on most of the country’s roads on January 1.
The Government is under mounting pressure to ease the cost of living for motorists and households, after a series of energy price hikes and with further mortgage interest rate rises from the European Central Bank due in mid-December.
The average price of a litre of petrol has fallen to €1.77, a 7c drop compared to October, while the average price of diesel is now €1.96 per litre, 6c less than a month ago at €2.02, an AA study released yesterday found.
Petrol prices soared to a record high of more than €2.20 per litre in June. At that time, they were 30% higher than a year previously, while diesel was 40% higher.
Prices have continued to hover around the €2 mark, with drops in some petrol stations leading to a surge of buyers and long queues. However, the falling fuel prices come as most tolls around the country are set to rise by 10c from January 1, although charges will not increase on the M3, the Dublin Port Tunnel and for tag-holders on the M50.
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Electric vehicle drivers will be hit by a 50% increase in the price of public EV charging. AA Ireland’s Paddy Comyn said last night: "This week has been a particularly challenging one as motorists look ahead to 2023, with the prospect of increases in toll prices across the country, as well as the announcement of an up-to-50% increase in the price of public EV charging.
"It had looked like we were on an upwards trajectory when it came to fuel prices, especially diesel, but thankfully these have settled somewhat."
It comes after it emerged 200 complaints from motorists about rising fuel prices were made to the Competition and Consumer Protection Commission (CCPC). Last March, the Government decided to reduce excise duty on both products to relieve the financial pressure on drivers.
Petrol dropped 20c per litre and diesel by 15c, but some drivers and politicians claimed reductions were not being passed on, prompting the CCPC to investigate. An analysis by the commission found that the cuts in excise duty were made by garages, although not always immediately. It said the main reason for this was that it took time for stations to receive new supplies of fuel taxed at the lower excise rate. The delays varied from station to station because of different stock levels and delivery.
Last night, pressure was mounting on Transport Minister Eamon Ryan to find a solution to the proposed toll increase after Taoiseach Micheál Martin and Tánaiste Leo Varadkar made it clear in a "frank" meeting they were not pleased with the increased cost in tolls.
When they were announced last week by Transport Infrastructure Ireland, Mr Varadkar said the Government was not only taken aback by the timing of the announcement but also by the scale of the increases, as they will rise to their maximum level. A senior source said the Taoiseach and Tánaiste were clear during the meeting that it was "bad timing", but acknowledged that Minister Ryan was "less keen on doing something".
The source added: "But they will work it out – they always do. They [the toll operators] are independent. Ryan did say he would go off and look at it. They are keen to do something about it. And they had a frank discussion, but the solution, we don’t know yet."
Backbench TDs in Fianna Fáil and Fine Gael also warned that the issue needed to be dealt with, with the Government having to pay the €25million fee to cover the increase in costs if they are not passed on to consumers.
Green Party leader Mr Ryan had warned that this approach would divert monies needed from other transport projects. However, senior government sources last night said it was "too early to say" if the Government would cover the costs, with more talks needed before a decision can be made. Minister Ryan warned that any move to pay for the increase in toll rates could lead to road maintenance or public transport infrastructure not going ahead.
From January 1 tolls across the road network will increase by a minimum of 10c – and by 20c for using the M50. Transport Infrastructure Ireland (TII) said the toll increases were being driven by the current rate of inflation.
Yesterday, Mr Ryan said: "It’s difficult because it’s a price increase in the private sector by and large.
"As I said, if we were to subsidise it, I wouldn’t want to undermine our investment in public transport or road maintenance." He said he would continue to talk with Public Expenditure and Reform Minister Michael McGrath and the other party leaders.
Sources close to Mr Ryan last night said that €25million was "a lot of public transport routes". Speaking later in the day, a spokesman for the Greens, said there was no specific timeline on coming back to the leaders with a solution.
Asked why the Government wouldn’t simply pay the estimated cost to cover the increase, the Greens spokesman said "€25million is still a significant amount of money; nobody would regard that as loose change".
Fergus O’Dowd, Fine Gael TD for Louth, said the matter was being raised with him by constituents and that there was no reason the State could not cover the cost of the increase in the toll rates. He added: "It’s an unexpected rise because of inflation; I think the State should absorb it, yes."
A spokeswoman for the Transport Department said there were "contractual considerations" to take into account if the costs were to be deferred by the toll companies.
