The AA Ireland’s latest monthly fuel price survey has shown another drop in petrol and diesel prices over the last month.
Petrol is down from €1.80 a litre in November to €1.72, while diesel has fallen from €1.81 to €1.72.
December marked the third month in a row that prices have dropped at the pumps.
But despite the price falls, Blake Boland, Head of Communications for the AA Ireland, said fuel prices remain quite elevated with yearly lows of €1.57 per litre for petrol in May, while diesel was as low as €1.47 in May.
Mr Boland noted that world oil prices continued to fall in December. “We saw year-highs of around $94 per barrel for Brent Crude at the end of September. However, it is currently rivalling yearly lows at $75 per barrel,” he explained.
“We’re also seeing a milder winter so far, which is helping with demand at source. Cuts in supply by OPEC countries haven’t had the impact expected on international markets. Other countries stepped in to take advantage of high oil prices and this is a factor in reducing the cost,” he added.
He also said that things are still far from certain on where fuel prices are going in the coming months.
“The situation in the Middle East is still unstable, and we’re yet to see if Europe will experience a cold snap that could drive up demand,” he said.
“But in the short-term, we are seeing prices drop and we hope that this trend continues into the New Year,” he added.
Meanwhile, the cost of refuelling an Electric Vehicle in Ireland has remained steady this month according to the AA Ireland Fuel Price Survey.
It saw a fractional drop from €978 to €975 for the average Irish driver covering 17,000km per year.