Homeowners & businesses are taking another financial hit this month as fuel prices continue to soar. According to the Central Statistics Office (CSO) the cost of living rose in February at its fastest pace in almost three years as the annual rate of inflation reached its highest level since November 2008.
Inflation is now at 2.2% with prices up by 0.8% in February alone. The CSO said the biggest contributor to the annual inflation rate was the housing and fuel category, where prices rose by 9.5% with liquid fuel prices rising by 37.3% - this is before petrol prices shot to €1.52 in some areas during the past week.
Reports say that a combination of taxes and tensions in Libya have combined to push up petrol prices to a new high of €1.50 a litre but petrol station owners are calling on the Government to reduce fuel duties to stop spiraling prices at the pump as taxes account for more than 57% of the cost of fuel.
ISME (Irish Small and Medium Enterprises) said the prices rises were causing concern for small businesses and called for a reduction in excise duties on fuel to offset inflation. “With geopolitical uncertainties…oil prices will remain high, driving inflation higher in the coming months, with the resultant negative impact on the economy”.
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