Cost of living crisis: AA praises Consumer Council for slowing spiralling petrol and diesel prices in Northern Ireland

The news comes as it is predicted that the average cost of filling a typical family car with petrol could now exceed £100 for the first time. Data firm Experian Catalist said a litre of petrol cost an average of 180.7p today, an increase of 2.2p compared with the previous day.

AA spokesman Luke Bosdet said an online local fuel price checking tool from the NI Consumer Council was helping keep prices here 6p lower than in GB; prices in NI are normally higher than GB due to the extra distribution costs.

“Yesterday’s more than 2p-a-litre leap in average UK petrol prices is a huge shock, and fuels concern that speculation of a £2 litre just gives the fuel trade licence to pile on extra cost and misery,” Mr Bosdet said yesterday.

“The Government needs to act fast to rein in these excesses. The example of fuel price transparency in Northern Ireland, where petrol and diesel two days ago averaged 6p a litre cheaper than the UK average, shows a way forward that will revive competition and can be implemented in a matter of weeks.”

Asked why prices in NI were 6p a litre cheaper, Mr Bosdet added: “It has to be down in large part to the pressure put on retailers by the Northern Ireland Consumer Council price checker: it shows which towns are the cheapest and the lowest price available within a community.”

Richard Williams, Head of Transport Policy at The Consumer Council, said it launched its free online Fuel Price Checker in September 2020 to help NI consumers shop around.

“With petrol and diesel prices increasing in Northern Ireland by 36% and 40% respectively in the last year, demand for our Fuel Price Checker has increased,” he said. “In 2022, the monthly average hits to the tool have increased 526% compared to 2021.”

As the tool has increased price transparency in NI this may have contributed to keeping fuel prices here lower, he added.

The latest UK price hike is the largest daily jump in 17 years, according to the RAC. A similar increase yesterday was predicted to take the average cost of a full tank for a 55-litre family car to more than £100 for the first time. The average cost for the day will be published on Thursday morning.

Goretti Horgan, Senior Lecturer in Social Policy at Ulster University, said the government can take action.

“I think the disparity between NI and rest of the UK is indicative of price gouging,” she said. “Prices at the pumps in NI are cheaper closer to the border because businesses know customers will go there for cheaper fuel. Every increase in the price of fuel is a disaster for anyone who needs a car or van to work. Many lower paid workers are struggling to get to work because of poor public transport and impossible prices at the pumps.

“There is a lot the government could do immediately. Cutting fuel duty is an obvious move since fuel duty is over 50p per litre of petrol. While it has already been cut by 5p per litre, it remains more than 25% of the cost of a litre. They could also follow France and other countries and introduce a price cap on all kinds of fuel.”

Kevin Higgins, Head of Policy at Advice NI, said petrol price hikes are the latest in a long line of price increases that is particularly hitting the poorest households.

“Advice NI is not convinced that the action taken by the Chancellor, in providing one-off lump sums, will help over the longer term. Social security must be uprated in line with current inflation to give people a fighting chance to survive this cost of living crisis.”