Fuel Prices Climb as Government Ends Zero Tax Policy

April 1, 2024

Motor Fuel Prices on the Rise

As the new month unfolds, motorists and the retail sector brace for the impact of increased fuel costs. The government’s decision to end the zero tax rate on motor oil and petrol has led to an immediate price hike of 8.3 cents per litre. This change not only burdens citizens’ pockets in terms of transportation but also sends ripples through the retail industry, which relies heavily on transportation for goods distribution.

Further financial strain is anticipated with the expected introduction of a green tax by October-November, signaling yet another surge in fuel prices. Amidst these developments, the public remains in the dark regarding any potential compensatory measures to alleviate the financial pressure.

The combination of heightened consumption and a general uptrend in oil prices has seen fuel costs, particularly petrol and to a lesser extent oil, climb steadily. The international Brent crude oil price is a testament to this trend, currently sitting around $87 per barrel—a figure reminiscent of last October’s high.

The latest weekly EUR Bulletin oil report, dated March 25, 2024, reveals that the average price for unleaded petrol (95 octane) has escalated to €1,413.47 from €1,403.68 just a week prior, marking a 0.71% increase. Motor oil prices have shown some stability at €1,508.06, marginally down from €1,508.63. Meanwhile, heating oil prices have remained consistent at €1,068 compared to the previous week’s €1,069.

When looking at the broader EU-19 region, the average price of unleaded petrol as of March 25 was €1,813.10, experiencing a 1.05% rise from €1,794.85 a week earlier. This data underscores a broader trend of escalating fuel prices across the European Union.

With no immediate signs of price de-escalation and additional taxes on the horizon, consumers and businesses alike are advised to prepare for continued economic adjustments in response to the evolving fuel price landscape.

The government's termination of the zero tax rate on motor oil and petrol has led to an increase in fuel prices by 8.3 cents/litre, affecting citizens' transportation and the retail sector
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