Michael McGrath (Cork South Central, Fianna Fail)
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The price of diesel and petrol are an important cost for households and businesses in the Irish economy. In this context, my Department monitors and analyses these price dynamics closely on an ongoing basis.

From exceptionally low levels during the pandemic, wholesale oil prices rose steadily as Covid-19 restrictions eased. Following Russia’s invasion of Ukraine in February 2022, wholesale oil prices surged, eventually peaking at $117 dollars a barrel in June 2022. Since then wholesale prices have declined significantly to roughly $85 dollars a barrel, albeit remaining well above the 2019 average of $64 dollars a barrel.

Retail diesel and petrol prices (inclusive of tax) in Ireland have moved close to one-for-one with wholesale oil prices, with petrol and diesel prices peaking at the same time as wholesale markets - at values of €2.17 and €2.15 per litre respectively. Following a similar trajectory to wholesale oil markets, as of the 3^rd of April petrol and diesel stand at €1.74 and €1.73 per litre respectively.

Excise duties were reduced in March 2022 in order to mitigate the impact of the sharp rise in wholesale oil prices on the petrol and diesel prices facing consumers. Given the significant easing in the wholesale energy markets since their 2022 peak, excise duties were partially restored on the 1st of April and another restoration will take place on the 1^st of August.