Fuel Prices Continue to Drop in Ireland Despite Tax Hikes

Fuel prices in Ireland have decreased once again in October, continuing a three-month trend of falling costs despite the recent tax hikes implemented under Budget 2025. Petrol prices have dropped by 2 cents, now averaging €1.72 per litre, while diesel prices have decreased by 1 cent to €1.66 per litre, according to AA Ireland.

The primary cause for this decline is the stabilisation of crude oil prices, currently hovering around $74 per barrel. Historically, geopolitical tensions such as conflicts in the Middle East and the ongoing Russian invasion of Ukraine have triggered spikes in oil prices. However, despite these conflicts, the oil market has remained unexpectedly stable, contributing to lower fuel costs.

Electric vehicle (EV) drivers have also seen a benefit, with the annual cost to drive around 17,000 kilometers falling by €49 this month. Jennifer Kilduff, Head of Marketing & PR for AA Ireland, stated, “The average fuel price has dropped once again at the pumps, which is particularly good news for EV drivers, as energy providers continue to reduce rates.”

However, there is a note of caution. Fuels For Ireland has pointed out that Ireland now faces the highest fuel taxation levels in Europe, a direct result of the changes introduced in Budget 2025. While current lower oil prices are softening the blow for consumers, any future increase in crude oil prices could lead to steep rises in fuel costs at the pumps.