CONSUMERS HAVE received some much-needed good news with falls in the price of fuel and some food products, and the prospect of further decreases to come.
Milk supplier Avonmore yesterday dropped the price it charges retailers for some milk products by 6 to 10 per cent. The decrease applies to two-litre packages only. Supermilk falls by 10 per cent, low-fat milk by 7 per cent and ordinary milk by 6 per cent.
Glanbia, which sells Avonmore, attributed the fall to "declining economic circumstances". Retailers are not bound by the changes, but most are expected to pass on the saving to the customer.
Further food price decreases can be expected as a result of declining prices for basic commodities such as wheat and oilseed.
Fuel prices continue to fall as a result of dramatic falls in the price of crude oil. The price of a barrel of oil has dipped below $70, less than half the highs of over $147 seen last July.
However, the falls in the price of petrol at filling station pumps have been far less dramatic, and have been largely offset by the 8 cent a litre increase in duty on petrol announced in the Budget.
Maxol says the wholesale price of petrol has fallen marginally, from 127.8 cent three weeks ago to 127.3 cent today; however, this includes the eight cent Budget increase. The wholesale price of diesel is 128.1 cent, down eight cent. Danny Murray, chief executive of Topaz, said prices would continue to fall. Fuel prices would drop another 7 to 8 cent before Christmas, he predicted.
Meanwhile, Tesco Ireland said the increase in VAT rates from 21 per cent to 21.5 per cent would be implemented, as announced, on December 1st.
One Irish Times reader claimed staff at a Limerick branch of Tesco were repricing goods yesterday to reflect the VAT increase. He said staff confirmed this when he asked them what they were doing. A Tesco spokesman denied this was happening in any of its stores.