Petrol prices are higher now than at any time since the Gulf War, and the upward trend may continue. While prices at the pumps constantly fluctuate, motorists are likely to notice a significant rise in the cost of both petrol and diesel over the next few days.
One oil company, Statoil Ireland, yesterday took the unusual step of publicly announcing an immediate increase in the wholesale price of petrol of 1.8 pence per litre and a 0.8 pence rise in the price of diesel. These are likely to lead to similar rises at the pumps.
The increase, the biggest this year, is in line with similar rises introduced by most major oil companies operating in Ireland.
However, Shell Ireland's retail manager, Mr John McDonagh, said: "We are continuing to review our price, but we're not likely to have any move upwards this side of the weekend."
A Statoil spokesman said the increases were in response to substantial rises in world oil prices, which are now at their highest since Iraq invaded Kuwait almost seven years ago.
Low stocks and heavy US demand, at a time when a number of refineries in both Europe and the US were "out of action", were the main causes of the international price increases. "It's just coincidental that a number of refineries are closed at the moment, for reasons like maintenance and upgrading", Mr McDonagh said.
Of the average price of 60p per litre now charged at the pumps, two-thirds goes to the State in VAT. The retailer and wholesaler take just 3 1/2p each, while the remainder is accounted for in the cost of purchasing the raw material and shipping it to Ireland.
