Do not expect lower fuel prices at forecourts immediately, Fuels For Ireland warns

Ellen O'Donoghue

Motorists have been warned not to expect to see fuel prices fall at forecourts immediately.

Fuels for Ireland has said that the excise cut will feed through, but not every pump price will change at once.

In a statement, the organisation's chief executive Kevin McPartlan, said that although the reduction may not be at every forecourt immediately, it "should not be misunderstood as a failure to pass on the tax cut".

The reason is "practical", he said.

"Excise is applied when fuel leaves a terminal or refinery, not when it is sold at the pump. In recent days, the industry has been operating under disrupted conditions, and the priority has been to keep fuel moving and forecourts supplied where possible."

The impact of that is that some of the fuel arriving at sites in the immediate aftermath of the change will still have left facilities at the old excise rate.

This means that there may be limited movement at some pumps immediately after the new rate takes effect from midnight on Wednesday.

"The reduction is coming through," McPartlan stressed, "but there will be a lag as lower-duty fuel works its way through the system.

"Some sites may update quickly, while for others it may take 48 to 72 hours, with the overwhelming majority expected to reflect the lower rate by the weekend.

"Customers should also be aware that international wholesale fuel prices are continuing to move independently of tax changes.

"That may reduce some of the visible impact at the pump in the short term," he added.