Petrol and diesel prices increased significantly in August, according to the latest fuel price analysis from AA Ireland. Diesel recorded the steepest rise, increasing by 19 cents per litre in just one month.
The increases were driven by movements in wholesale markets rather than changes to excise duty, which remained unchanged throughout August. However, motorists face additional pressure at the pumps as the phased restoration of excise duty begins on 1 September.
How Much Did Fuel Prices Rise in August?
The average price of diesel rose to €1.92 per litre in August, up from €1.73 in July. This represents an increase of 19 cents per litre, or approximately 11%.
Petrol prices increased by 9 cents per litre, rising from an average of €1.75 in July to €1.84 in August—an increase of around 5%.
For a motorist filling a 50-litre tank, the August increases mean paying approximately:
- €9.50 more for a tank of diesel
- €4.50 more for a tank of petrol
Across four full tanks in one month, that amounts to an additional €38 for diesel drivers and €18 for petrol drivers.
Fuel Price Changes at a Glance
- Diesel: €1.92 per litre on average in August, up 19 cents from €1.73 in July
- Petrol: €1.84 per litre on average in August, up 9 cents from €1.75 in July
- Excise duty: Unchanged during August
- From 1 September: An additional 9 cents per litre on petrol and 10 cents per litre on diesel as excise reductions begin to be reversed
The temporary reductions of 27 cents per litre on petrol and 32 cents per litre on diesel, including the reduced National Oil Reserves Agency levy, remained in place until 31 August.
Wholesale Markets Drove the August Price Increases
An AA Ireland spokesperson said the sharp rise in fuel prices during August was not caused by a change in taxation.
“This is a significant month-on-month increase, and motorists should understand where it has come from. Excise duty did not change during August, so what drivers are seeing at the pumps reflects global market conditions rather than any change in tax. Diesel has borne the brunt of it this month.”
Fuel prices in Ireland are affected by several international factors, including global oil supply, geopolitical uncertainty and currency movements. Continued volatility in global energy markets means prices at Irish pumps can change rapidly.
Further Petrol and Diesel Price Increases Expected
Motorists are being warned to prepare for further price increases as excise duty reductions are reversed in stages from September to December.
The first restoration takes effect on 1 September, adding 9 cents per litre to petrol and 10 cents per litre to diesel.
The AA Ireland spokesperson added:
“The concern is what comes next. From 1 September, excise begins to be restored in stages, starting with 9 cents on petrol and 10 cents on diesel. If wholesale prices hold where they are, motorists should plan for further increases through the autumn rather than expect this month to be the peak.”
Excise Duty Restoration Schedule
The planned increases are:
| Effective date | Petrol increase | Diesel increase |
|---|---|---|
| 1 September, including excise and NORA levy | 9 cents | 10 cents |
| 1 October | 8 cents | 8 cents |
| 1 November | 5 cents | 7 cents |
| 1 December | 5 cents | 7 cents |
If wholesale prices remain at current levels, these tax changes could place further pressure on household and business transport costs throughout the autumn and winter.
Vehicle Maintenance Can Help Reduce Fuel Costs
Although motorists cannot control wholesale prices or fuel taxes, AA Ireland says regular vehicle maintenance can help improve fuel efficiency and reduce everyday running costs.
“Simple checks such as maintaining the correct tyre pressure, servicing your vehicle regularly and replacing worn air filters can all help improve efficiency,” the spokesperson said.
With petrol and diesel prices in Ireland expected to remain under pressure, small improvements in fuel efficiency could help motorists limit the effect of further increases.
For more information about the phased restoration of fuel excise reductions, check out the Government of Ireland announcement.
