The gap between the price of fuel north and south of the border is getting wider, new research suggests.
The latest market analysis in the Republic shows the average price of a litre of diesel increased to €1.78 (£1.52) in April, while petrol averaged €1.81 per litre (£1.55).
It marked a monthly increase of 13c per litre for diesel and 9c per litre for petrol, according to the research by the AA.
Coupled with the rising price of alcohol following the introduction of the Republic’s deposit return scheme (DRS), it could provide more incentive for consumers to head north of the border in search of savings.
Fuel prices in Northern Ireland have also increased in response to the rising wholesale price of crude oil in recent weeks.
The latest Consumer Council survey found the average price of a litre of diesel was £1.50.4 this week, up by 0.6p from the previous week.
It’s the first time the diesel average has passed the £1.50 mark since November 2023.
Petrol increased by 1.2p per litre this week to £1.43.4 per litre, according the Consumer Council’s survey of forecourts.
A barrel of Brent crude oil had fallen below $80 at the start of February, but rose to $91 in early April.
Despite an overnight spike in response to Israel’s attack on Iran, prices eased to around $87 at noon on Friday.
Fuel prices may be rising on both sides of the border, but it’s the hike in excise duty in the Republic that is seeing the gap widen.
The Irish government cut excise duty on diesel by 21c and 16c on petrol at the start of 2022, amid concern fuel prices could reach €2 per litre at forecourts.
The excise duty has gradually been reinstated, and is due to be fully restored in August, potentially adding another 4c on a litre of diesel and 5c on a litre of petrol, once VAT is factored in.
The gap is expected to increase the number of consumers travelling north of the border to buy fuel.
The introduction of the Republic’s deposit return scheme (DRS) has also increased the price of many alcohol products south of the border.
The scheme, which came into effect on February 1, adds a 15c charge to every plastic bottle and drinks can between 150ml and 500ml, with 25c added to every drinks container with a capacity of over 500ml up to and including 3 litres.
While the DRS charge can be recovered by consumers, it has widened the border price gap for many products.
Tesco Ireland currently prices a four pack of 500ml Guinness Draft cans at €9.60 (£8.22), including the DRS charge.
Four 440ml cans of the same product can be purchased at Tesco’s Newry or Enniskillen stores for £5.50 (€6.42).
Four cans of Carlsberg (440ml) in Tesco’s northern stores is currently priced at £5 (€5.84).
In the Republic, four 500ml cans of Carlsberg (including 60c DRS) are on the shelf in Tesco for €10.60 (£9.08).
It’s not just alcoholic products where the gap is growing. Tesco Ireland charges €3.50 (£3), including 25c DRS, for a two litre bottle of Coca-Cola Zero.
The same bottle in Tesco’s Newry store costs £1.85.
