Motoring lobby group AA Ireland has called on the Government and the European Commission to investigate the soaring cost of diesel.
Diesel prices have hit a record high and rose by almost 8 cent a litre in April alone, according to figures released by the group today.
The unprecedented cost of diesel is hitting hauliers as well as ordinary motorists who are increasingly turning to diesel as a more environmentally friendly option.
From July 1st, VRT and road tax will be based on a vehicle’s carbon emissions rather than its engine size. More fuel-efficient cars, particularly diesel models, are likely to see a fall in price, while large, petrol-engined vehicles are likely to rise in price.
Diesel cars represent 27 per cent of overall sales, but these are expected to be closer to 50 per cent by 2009, when the full effect of the new tax regime will be seen. Larger petrol engines are likely to suffer under the new regime.
Today's data shows that the average price of a litre of diesel is now 132.4 cent, up 7.8 cent since last month's survey. A litre of petrol now costs an average of 124.9 cent, up by 3.8 cent since April. Diesel was 108.5 cent a litre in May 2007, while petrol was 115.9 cent.
Diesel prices have almost double since May 2001, when a litre cost 74.9 cent and they have risen significantly for petrol, which was 87.6 cent a litre seven years ago.
Diesel prices are traditionally lower than petrol but overtook petrol prices in December and have remained higher since then.
“The rise in diesel prices is phenomenal,” said AA public affairs manager Conor Faughnan.
“We have never seen prices rise so fast or reach so high. It is having a major impact on diesel motorists and also on the cost of haulage and the costs for many businesses. It’s bad news for the consumer’s pocket and the economy as a whole.”
He said he was “open to the possibility” that oil companies were artificially inflating prices as motorists move more and more towards buying diesel vehicles. However, he added he was “not entirely convinced" and that there were other factors at play.
Diesel prices usually fall at this time of year after a typical increase in December.
“We can understand oil prices pushing up the cost of fuel, but that does not explain why diesel is affected so much worse than petrol,” Mr Faughnan said.
Prices have risen right across Europe without any satisfactory explanation, according to Mr Faughnan.
“European countries including Ireland are encouraging their motorists to switch to diesel for environmental reasons, and it would be extremely disappointing if those consumers lost out.
“This diesel mystery needs to be solved, and both the Irish government and the European Commission need to make it their business to find out what is going on.”
