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Irish Mirror
Irish Mirror
National
Clare McCarthy

Why is petrol so expensive and can the Government help with my soaring bills?

Rising petrol and diesel prices are making life harder for Irish drivers who are having to pay more than ever before to fill up their tanks.

In many forecourts across Ireland, the average price for diesel is now over €2.10 a litre and petrol has reached the €2.20 mark.

Global events such as the war between Russia and Ukraine, the price of crude oil, and EU sanctions are all having an impact on the price of fuel.

But what is really causing the increase in prices in Ireland and is here anything that can be done by the Government to help motorists struggling with the cost of fuel?

Why is petrol so expensive these days?

CEO of Fuels for Ireland Kevin McPartlan indicated three major factors that had an impact on the spike in petrol prices including the Russian invasion of the Ukraine, the euro to dollar exchange rate and a yearly holiday in the US.

Speaking to Katie Hannon on RTE on Saturday morning about how prices have got so high, Mr McPartlan said: "Since the Russian invasion of the Ukraine, that obviously was a massive shock to the global market and that did push prices up immediately.

READ MORE: Taoiseach: 'Anyone' struggling with fuel costs can go to social welfare office

"Some countries and some companies decided that they wanted to get out of any supply relations with Russia. That was perhaps easier for Ireland than it was for many other European countries because so little of out fuel ever came from that course.

"What happened then in recent weeks, that has made this dramatic change in the last 10 days, is the announcement of the sanctions from the EU. Even though they're not in place, it has pushed people who were still continuing to buy from Russia to look to alternative sources.

"They're now looking to buy from who we have been buying from previously and that's creating more competition for that stock."

He continued: "The second thing is the value of the euro against the dollar is in favour of the dollar and when the wholesale prices of fuel stocks are in dollars and we're retailing in euro - that has an impact.

"The final thing is a bit of a quirk and it's surprising how big an impact this has but it does happen every year, the Memorial Day holiday in the US [on May 30] kicks off the thriving holiday season there.

"The American Automobile Association published research that shows that in the few days up to Memorial Day about 40 million American tourists drove more than 80km on a period of a very short couple of days.

"That always, every year, puts a spike in gasoline prices."

Can the Government help with my soaring fuel bills?

Yesterday, Transport Minister Eamon Ryan said that if people are struggling with paying for petrol or diesel, they should apply to their local social welfare office for help.

The Green Party leader’s simple advice was for those who can’t afford fuel to “go to their social welfare office and look for further assistance.”

The help available to motorists could come in the form of an Additional Needs Payment, which is a new one-off payment that has been made available to help households cover expenses they cannot afford to pay from their weekly income.

You don’t have to already be in receipt of a social welfare payment to get an Additional Needs Payment.

However, you must be living in Ireland and your income has to be below the following weekly limit of €350 for a singe person, €450 for a couple and €551 for a couple with one child, etc.

It is available to cover costs such as a fuel expenses, recurring travel costs to hospital and much more.

Once you apply, your circumstances will be assessed by a Community Welfare Officer before deciding the payment you can get.

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