VAT increase hits the pumps

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Motorists in Inishowen received a shock this week as petrol and fuel prices across the peninsula rose when the VAT and carbon tax hikes came into force.

In Buncrana, Muff, Bridgend and Moville, petrol prices peaked between 157.1 and 155.9c per litre, while the cost of diesel was approximately 154.7c for every litre. However it is also reported that unleaded fuel rose to 159.9 in one Inishowen petrol station.

This is the highest drivers in the peninsula have had to pay in some time as motorists had experienced a brief dip in prices in August when the price of unleaded petrol dropped below 1.50 per litre.

However as the reality of the tax hikes and budget cuts hits home for families across Inishowen, motorists have been urged to shop around as much as possible.

Conor Faughan from AA Ireland said it pays for consumers to check out different stations.

“The weaker Euro against the dollar (in which oil is traded) is putting prices up as well as fears of a new conflict in the Persian Gulf as Iran threatens international interests. But you can still get wide differences in the prices being charged so as always we urge motorists to shop around,” he sad.

Earlier this week, there was a massive 6c per litre difference in petrol prices between two Inishowen villages just a short distance from each other, and 6.4 cent difference in diesel. However it is believed those figures could even out by this weekend.

Petrol stations are currently doing everything they can to remain competitive with many offering 20% in the sterling exchange rate, and others rolling out draws and competitions to keep patrons filling up their tanks.

In March last year, when prices went above 1.50 in the peninsula for the first time, the ‘Journal’ revealed that many workers who had any length of distance to travel to work, were instead opting to leave the cars at home and instead car-sharing with fellow colleagues who were feeling the pinch at the pumps.