AA’s fuel price survey – Nov 09

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CARBON TAX KILLS OFF REPUBLIC’S PETROL COST ADVANTAGE

The AA’s fuel price survey shows that with the addition of 4 cent per litre to the cost of petrol and 5 cent per litre to the cost of diesel in the form of the new Carbon Tax, the Republic has lost its price advantage over Northern Ireland.

Petrol now costs an average of 122.4 cent per litre and diesel 112.4 cent per litre. On top of successive tax increases this means that in the Republic now about 70% of the retail price of petrol and 58% of the retail price of diesel is tax. This is made up of excise duty, Vat and the carbon tax.

The average price for petrol in Northern Ireland is now the same as the Republic, €1.22 per litre.

“In September of last year, before the government added 8 cent to excise duty, petrol was about 12% cheaper in the republic.” Says AA Director of Policy Conor Faughnan. “There was an established pattern of Northern Irish drivers crossing the border to refuel in the south, giving a big boost to southern tax receipts. We have scored a big own goal in shutting off that revenue completely. Government receipts from the Carbon Tax will be disappointing for just this reason”

Diesel remains cheaper in the Republic because it is taxed more highly in the UK. A litre costs a Northern Irish driver €1.24 on average, roughly 10% more than in the South. However that gap is narrowing; in September of 2008 Diesel was 18% more expensive North of the border.

See www.aaireland.ie/petrolprices

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AA money-saving tips (Fuel):

Buy fuel in units of litres, not euros. This makes it obvious where you get the best value

Shop around: don’t always use the same garage out of habit

Drive smoothly and slowly; a harsh driving style burns more fuel

Air conditioners are very thirsty and can add up to 10% to fuel usage. Switch them off if they are not needed

AA money-saving tips (Insurance):

Check your cover – it may be possible to reduce the insured value of your vehicle to reduce your premium.

Review who is on the policy, and who needs to be. Perhaps a family member has moved out or now drives a different car.

Be honest – do not tell fibs on your proposal form (for example about penalty points) or you may risk losing some or all of your cover if you have to claim

Married? ‘Insured & spouse’ deals can often reduce your premium. Ask your insurance company or broker.

Opting to take a higher excess can bring your premium down (but obviously increases your costs in the event of a claim)

Best price isn’t necessarily best value – features like ‘protected No Claims Discount’ are important and can stop your premium rising in future years

Look for deals. For example, AA gives discounts on Motor insurance to AA Members.

Full details of the AA fuel price survey for November, along with previous months for comparison, can be found on the Association’s website at www.aaireland.ie/news.