Diesel and petrol prices approach April peaks as US and G7 agree strategic reserve release

The prices of petrol and diesel are creeping towards the April highs that led to national fuel protests, with diesel now over €2 and petrol approaching that level. According to monitoring site fuelwatch.ie, the average price of petrol is €1.99 per litre, while diesel stands at €2.16 per litre. On the first day of the protests last April petrol was an average of €2.12 per litre while diesel was €2.27 per litre, before the final round of excise duty cuts, worth 10 cent on both fuels, were applied. US president Donald Trump on Friday night said a threatened diesel export ban was “never really on the table” after other G7 nations agreed to release fuel from emergency stocks.READ MOREThe United States is the largest producer of diesel but it has seen growing internal political pressure as consumer prices rise in the wake of the war in Iran and the disruption of Gulf oil exported through the Strait of Hormuz, causing strain on farmers and other businesses. An export ban, while likely to suppress prices in the US in the short term, would have left European countries facing more limited choice, and potentially much higher prices, for fuel.Russia, under sanction due to the war in Ukraine, is also a major diesel producer, and some of its capacity has been damaged in the conflict. Other larger-scale refiners in China and India focus on their domestic needs and take supply of crude oil from the Gulf, which has been disrupted. Protests in Ireland, which ran from April 7th to 14th, brought much of the country to a standstill. Sinn Féin tabled a motion of no confidence in the Government, with the Coalition responding with its own motion of confidence that won by 92 votes to 78. [ Fuel protesters warn of further action if budget does not slash taxesOpens in new window ]The Government responded to the protests with a €505 million support package. Temporary cuts reducing excise duty on petrol and diesel were also extended. Fuel prices have remained volatile, exacerbated by global instability, particularly the US-Iran war. In mid-February the average diesel price sat around €1.74 per litre and petrol around €1.75. However, prices started to rise sharply by the beginning of March. By the third week of March the average diesel price kept rising, peaking at €2.20 by the end of the month. April 7th saw the peak with the average prices of €2.12 for petrol and €2.27 for diesel. Certain petrol stations may have prices 10-15 cents cheaper than the average figures. FuelWatch.ie relies on user-reported prices. There is no public database of official fuel prices on forecourts.The rising prices have fed through to consumer behaviour, with the Central Statistics Office pointing to inflation as the cause of a 2.8 per cent decline in fuel sales in August. [ Has the Government’s strategy to keep fuel costs down proved to be ‘knee-jerk’ and difficult to reverse?Opens in new window ]Minister for Public Expenditure Jack Chambers has suggested the Government is considering extending temporary excise duty cuts on petrol and diesel into early spring as part of Budget 2027. A once-off fuel allowance payment has also been mooted.Some industry sources have warned that prices over €2 for petrol and diesel could become the new normal, especially if the tensions in the Middle East persist. – Additional reporting by PA