Motorists across Ireland are facing renewed pressure at the pumps this month, as petrol and diesel prices inch upward following a brief drop in May. According to AA Ireland, average petrol prices rose by one cent to €1.77 per litre in June, while diesel increased to €1.69 per litre, also up by one cent.
Though modest, the month-on-month increases come amid broader market instability, driven by global oil price fluctuations, rising demand from summer travel, and the ongoing impact of geopolitical tensions in the Middle East.
Global benchmark Brent crude has been on a rollercoaster in recent months. Prices tumbled to a four-year low of $58.40 per barrel in early April but rebounded sharply, spiking to $81.40 by late June after Israel launched a bombing campaign against Iran. The situation briefly sparked fears over supply disruptions, which have since eased following a ceasefire announced by U.S. President Donald Trump.
Despite the easing of tensions, industry leaders warn that risk premiums and uncertainty continue to influence market dynamics. “Markets are reacting to risk, not just reality,” said Kevin McPartlan, CEO of Fuels for Ireland. “Wholesale prices go up as soon as there’s uncertainty, even if supply isn’t immediately impacted.”
For Irish consumers, the effects are compounded by domestic tax structures. With excise duty, carbon tax, and VAT included, over €1 of the €1.77 paid per litre of petrol goes to the state. Ireland remains one of the most heavily taxed countries in the EU for fuel, and fully reliant on imports for its energy needs.
Fuel costs for Irish retailers are also affected by the exchange rate, refinery costs, distribution, and a two-week lag between crude oil purchases and their appearance in pump prices.
Meanwhile, electric vehicle (EV) charging prices have remained stable, offering a more predictable alternative for consumers—though Ireland’s reliance on oil- and gas-powered electricity generation still ties EV costs to fossil fuel markets indirectly.
Fuels for Ireland is urging the government to launch a comprehensive review of how fuel is taxed. The group has proposed forming a panel of stakeholders—including environmentalists, economists, and rural representatives—to shape a more balanced policy that maintains revenue while easing the burden on households.
“The only part of this we can control is taxation,” McPartlan said. “We hope the government will consider changes in time for Budget 2026.”
While fuel prices may stabilise in the short term, McPartlan cautioned against assuming the worst is over. “To suggest what’s going to happen weeks from now would be foolish,” he said.
