Over the past month, diesel and petrol prices in Ireland have risen sharply, reaching levels not seen since the aftermath of Russia’s 2022 invasion of Ukraine, which triggered a global cost-of-living crisis. At the start of March, pump prices for both fuels hovered around €1.70 per litre. Supply disruptions originating from the Middle East have since pushed prices to approximately €2.08 per litre for diesel and €1.85 per litre for petrol. These figures reflect the government’s temporary excise cuts of 20 cent per litre for diesel and 15 cent for petrol, in place until the end of May.
The rapid increase has led some motorists to allege price-gouging by service-station operators. The Competition and Consumer Protection Commission (CCPC) defines price gouging as charging prices considered unreasonable or unethical, often during crises. While it is not illegal to adjust prices freely, colluding to fix prices would breach competition laws.
AA Ireland’s National Average Price Index shows that diesel rose from €1.72 per litre in February to €1.90 in March, while petrol increased from €1.73 to €1.81. Before the excise cuts, diesel exceeded €2.30 per litre at some forecourts, with petrol around €2. The jump represents an increase of roughly 60 cent for diesel and 30 cent for petrol.
Fuels for Ireland, representing the oil industry, strongly denies allegations of profiteering. Chief Executive Kevin McPartlan said, “It’s entirely possible for prices to rise rapidly without price gouging.” He pointed to publicly available wholesale price data, which show that increases at the pump mirror surges in global fuel markets.
The phenomenon known as “rockets and feathers” describes how prices rise quickly but fall slowly. Some motorists criticised retailers for not immediately passing on the government’s excise cuts. Industry representatives explained that stations selling older stock purchased before the cut would face losses if prices were reduced instantly, and prices would only decrease once newer, cheaper stock reached the pumps.
UCD energy economist Lisa Ryan said suppliers tend to be “risk averse,” raising prices quickly when costs rise but reducing them more slowly. She added that wholesale price increases largely explain recent spikes in petrol and diesel, though home-heating oil, which lacks the same competition, has nearly doubled in price.
The CCPC has reviewed fuel pricing in past years and found no evidence of anti-competitive behaviour. Its 2022 report concluded that rising international wholesale prices, rather than collusion, were responsible for pump-price increases. The commission also noted that competitive markets allow consumers to switch providers if prices are high, keeping pricing generally fair.
Ireland’s fuel market has multiple import terminals and a mix of branded and independent service stations. Retail margins typically account for around two cent per litre, while government taxes form more than half of the pump price. Wholesale price increases remain the primary driver of the recent surge, with competition helping prevent unfair price manipulation.