By Chris Ashmore
HUNDREDS of Donegal motorists got an unexpected boost to lighten the cost of their journey to Dublin to follow the county footballers on their quest for All-Ireland glory at the weekend.
The gap in fuel prices between the North and the Republic has widened considerably since the start of the year.
In fact, the cost of filling up a car based on a typical 60 litre tank of unleaded petrol can be €15 less in the North.
And while those who cross the border regularly may be aware of the savings to be had, many of the Donegal GAA fans flocking to Dublin for Saturday’s semi-final were pleasantly surprised when stopping at Northern forecourts.
In fact, several forecourts in the North were actively promoting the difference in fuel prices, some with flashing signs and others with banners and posters.
“It was a very busy weekend, and a lot of people from Donegal were filling up their cars,” one forecourt attendant told the Donegal News, adding that a lot of motorists had not realised how much the prices have changed in recent months.
The price of a litre of unleaded petrol in the North is currently around €1.28 a litre for unleaded. Based on a 20 per cent allowance, this equates to €1.54.
With the cost of unleaded in Donegal varying between €1.67 and €1.79 a litre, this works out at up to 25 cent a litre difference. On a 60 litre tank that’s between a €7.80 and €15 plus difference.
That is why AA Ireland advises people to shop around.
While diesel in the Republic is cheaper than unleaded, the reverse is the case in the North, due to the way it is taxed.
Nevertheless, diesel is also cheaper on the northern side of the border. It currently hovers around the £1.35 mark which is €1.62 based on a 20 per cent currency differential. In Donegal, diesel is generally around €1.66 to €1.71 a litre.
Using the 60 litre comparison again, the saving on a 60 litre fill works out between €2.40 and €5.40.
For the best part of the past two decades, unleaded and diesel fuel has been cheaper in the Republic than in the North. However, the imposition of additional carbon taxes in the Republic has not just seen the price narrowing, it has now flipped in favour of the North.
The disparity in forecourt prices is increasing the pressure on margins for many operators near the border in the Republic. Back in May, one Texaco filling station in Muff closed its doors, and there are concerns more closures could follow.
Fuels for Ireland, which represents the fuel industry, has raised the issue with the Minister for Finance, and is continuing to lobby for a reduction of the tax take on unleaded petrol and diesel.
According to AA Ireland, petrol now costs an average of €1.77 per litre, up 1 cent since May and diesel has risen to an average of €1.69 per litre, up 1 cent month-on-month.
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