The average price of petrol and diesel both fell at the pumps in the last month according to the latest survey of prices from AA Ireland.

Petrol now costs an average of 158.1 cent per litre, down 3.9 cent since April. Diesel also fell significantly by 4.9 cent to an average of 148.9.

“This is obviously very good news for Ireland’s motorists.” Says Director of Consumer Affairs Conor Faughnan. “We had expected it over the last number of weeks so the data is not a surprise but even so it is very welcome.”

While prices have fallen somewhat the AA again reminds the government that while fuel is better than it was a few weeks ago it is still a long way from a satisfactory or reasonable level and that is mostly due to very high taxes.

“Since the financial crisis began back in 2008 both the last government and the current government reacted by heaping taxes on fuel. Between them they have added 23 cent per litre to the retail price of both main fuels. We now charge 57% of the retail price of petrol in taxes. We have gone from being relatively benign in comparison with our European peers to being very expensive, a fact that hits Irish business competitiveness as much as it hits ordinary consumers.”

The AA also points out that while there are other EU countries, like the UK, that put more tax on fuel than Ireland does they do not have the additional motoring taxes that we endure.

“Ireland has expensive annual car tax, 23% VAT, extensive tolls, vehicle registration tax and a 5% levy on all motor insurance as well as very high fuel taxes.” Says Faughnan. “Taken in combination this means the Irish motorist carries a huge burden. Although we argued successfully against making this even in worse in the last budget, the government did not make it any better.”

The AA has heard from many motorists first-hand about the impact that this has on ordinary lives. An AA member reported recently that he had to take a week’s holidays from work at the end of the month because he literally could not afford to re-fill the car for his commute. Others report that they have cancelled trips down the country to visit relatives because there simply is not the money to pay for petrol.