The Republic's Border counties are likely to benefit from an influx of motorists from the North who now have more reason than ever to make the journey to fill their tanks across the Border. The British budget made unleaded petrol about a third more expensive than in the Republic and now means unleaded petrol in the UK is the most expensive in Europe.
If the motorists smoke, they will do well to also stock up on cigarettes which will now be about £1.30 cheaper per pack of 20 to purchase in the Republic.
A 17.5 pence sterling increase was imposed on the price of 20 cigarettes by the Chancellor, Mr Gordon Brown, bringing the price of a pack to about £3.82 sterling (IR£4.45). This compares to about £3.15 in the Republic.
Meanwhile, oil companies said a litre of unleaded fuel would now cost about 67p sterling (IR78p) in the North, a rise of 6.5 per cent, or 3.8p. In the Republic a litre of unleaded petrol costs about 58p.
Drivers of diesel vehicles have an even greater incentive to travel south. Mr Brown announced that diesel would go up by 6.1p sterling a litre.
The DUP Assembly member Mr Gregory Campbell said the increases meant that drivers with diesel-powered cars could now save around £15 sterling (IR£17.50) on a tank of fuel by doing business in the Republic.
Many filling stations along the Border could be forced out of business by yesterday's budget, he warned.
The Northern Ireland Petrol Retailers' Association yesterday urged that a special case be made for Northern Ireland so that excise duties between the North and the Republic could be harmonised.
In the Republic, Texaco Ireland's advertising and public relations manager, Mr Simon Behan, said the State was already benefiting from the price differentials which had emerged in recent years. Except for Statoil, the petrol distribution companies have northern operations which will mean that group balance sheets will remain the same. "You will be gaining on one side of the Border and losing on the other," Mr Behan said.
Mr Brian McKevitt, who runs the Maxol station on the Newry road near Dundalk, has noticed the steady increase in Northern traffic and expects to benefit from the latest price rises in the North. "It is going very well at the moment. This will be, hopefully, an added boost.
"A large percentage of sales would be Northern Ireland sales. It has gone up all the time," he said. Mr Eugene Mannion, manager of Murphy Brothers service station at Carrickastricken, Forkhill, Co Armagh, said he has increasingly had to diversify into convenience store goods and off-licence trade. "In the past the petrol station was the big thing but that has long since gone."
The off-licence was once a big attraction for shoppers from the Republic and, even with a strong sterling, the North still has an edge over the Republic's prices for wine and beer. British budget news and analysis: