DIESEL IS now averaging €1.246 a litre, four cent more than petrol, according to an AA Ireland fuel survey released yesterday. In December 2007 the equivalent figures were €1.192 for a litre of petrol and €1.198 for diesel.
The news comes as concern at the high price of diesel has been expressed by an Oireachtas Committee examining the issue. Conor Faughnan, AA Ireland spokesman said although high fuel prices were a Europe-wide phenomena, there was concern at "what appears to be a disproportionate rise in diesel prices".
While petrol prices have risen by 0.5 cent since March, diesel prices grew by nearly three cent over the same period.
Faughnan said the latest rise in diesel prices was prompting concern for hauliers and business and also the "rapidly growing numbers of private motorists who are choosing diesel because the new tax system favours the cleaner fuel".
He said fuel prices were up generally on higher oil prices - which hit a new record high at over €113 a barrel yesterday - but the reason why diesel is rising faster than petrol was a mystery. "There is a serious concern in the consumer's mind that diesel is going up just when we are all being incentivised to buy diesel cars," he said.
"Increased sales of diesel-based vehicles are certainly driving demand for the fuel and the entire fuel complex continues to remain elevated due to a speculative element over the past six months," said Stuart Draper, head of research at Dolmen Stockbrokers.
He also believes the impact of this speculation should dissipate over the coming months.
The rising prices are taking place against a backdrop changes to the motor tax system which will likely result in a rise in sales of diesel cars.
The issue was discussed recently by the Joint Oireachtas on Energy.
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