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Fuel Prices on the Rise: What You Need to Know

by Deirdre O Meara
fuel pump energy gas pump 1596622

The new year has brought a streak of good news for drivers, as fuel prices have stabilized since January. Unfortunately, experts warn that prices are likely to increase soon. According to AA Ireland, the average petrol price across the state is now €1.61, a 0.6% increase from December 2022. However, an EU-wide ban on the importation of Russian oil products set to come into effect on February 5th could have serious implications for fuel prices here in Ireland, both at the pump and in home heating costs.

 

The EU Ban on Russian Oil Products
The EU-wide ban stipulates that all member countries must stop importing Russian oil products by February 5th. This includes diesel and petrol produced by Russia’s largest oil producer Rosneft, which accounted for over 40% of all petroleum imports into Ireland last year. While some companies may look to alternative suppliers such as Nigeria or Iraq to fill the void left by Russia’s departure from the market, it is unlikely that these countries will be able to make up for the large amount of fuel previously supplied by Rosneft. As such, there is likely to be a significant shortage of diesel and petrol in Ireland in the coming weeks, leading inevitably to higher prices at the pumps and potentially higher home heating costs as well.

 

What Can We Do?
The EU-wide ban stipulates that all member countries must stop importing Russian oil products by February 5th. This includes diesel and petrol produced by Russia’s largest oil producer Rosneft, which accounted for over 40% of all petroleum imports into Ireland last year. While some companies may look to alternative suppliers such as Nigeria or Iraq to fill the void left by Russia’s departure from the market, it is unlikely that these countries will be able to make up for the large amount of fuel previously supplied by Rosneft. As such, there is likely to be a significant shortage of diesel and petrol in Ireland in the coming weeks, leading inevitably to higher prices at the pumps and potentially higher home heating costs as well.

 

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