Fears conflict in the Middle East will send petrol, diesel and home-heating oil prices soaring
The price of 1,000 litres of heating oil has risen by €25 in the past few days, with energy experts expecting more hikes.
Brent crude is up by 8pc since the first strikes on Iran last Friday, and was up by 13pc at one stage.
This has raised fears of even higher increases in the price of petrol, diesel and heating oil.
Late on Saturday, Iran said Israel struck a key fuel depot, while an oil refinery in the capital, Tehran, was also in flames.
Wholesale costs for petrol were up 4c a litre in the past week, with diesel up 3c
Iran has also partially suspended production at the world's biggest gasfield, the South Pars, after an Israeli strike caused a fire there.
Adding to the uncertainty, Iran said it was considering closing the Strait of Hormuz amid the intensifying conflict with Israel. Such a move would send oil prices soaring.
Petrol and diesel prices are already up in the past few days, according to Kevin McPartlan of Fuels for Ireland, which represents the major petrol retailers.
He said wholesale costs for petrol were up 4c a litre in the past week, with diesel up by 3c.
Industry sources expect prices at the pumps to keep rising because of the conflict in the Middle East.
ADVERTISEMENT
Mr McPartlan said: 'The various different factors that impact on petrol and diesel prices are all going in the wrong direction.'
He denied his members were 'ripping off the public' by quickly increasing prices and failing to drop them when crude had fallen earlier this year.
He said profit margins were thin on the sale of petrol and diesel, and what he described as dynamic pricing meant wholesale prices were reflected quickly in what would be charged by petrol retailers.
Prices charged by forecourt operators reflect the wholesale price when the ship containing the refined petrol and diesel leaves port, with most fuel coming to Ireland from Wales.
1,000 litres of heating oil is €900, nearly 10pc less than this time last year
Mr McPartlan said some petrol retailers would take deliveries several times a day.
Michael Toner, of home-heating oil price comparison site CheapestOil.ie, said his site had recorded strong rises in prices.
'We're seeing a big jump in heating oil prices in just a couple of days of over €25 for 1,000 litres and we're expecting that to increase further,' he said. 'This is undoubtedly as a result of conflict in the Middle East between Israel and Iran.'
The price of 1,000 litres is now averaging €900, 'which is still nearly 10pc less than it was this time last year, but we are fully expecting that gap to narrow', Mr Toner said.
Energy expert Dr Paul Deane, of University College Cork, said there had been a jump in EU wholesale gas prices in the past few days, but it had been modest in relation to past price increases.
However, of concern is the potential closure threat to the Strait of Hormuz, a shipping route for nearly 20pc of global liquid natural gas (LNG) trade.
If this were to happen, it would increase prices, but the magnitude would really depend on the duration, Dr Deane said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The 42
5 hours ago
- The 42
Open letter signed by players calls on GAA to end sponsorship deal with Allianz
AN OPEN LETTER was presented to the GAA yesterday at a protest outside Croke Park, calling on the association to end its sponsorship arrangements with insurance company Allianz. It's reported that over 800 current and former GAA players have signed the letter due to links between Allianz and Israel. Advertisement Letter signed by over 800 GAA former and current players was handed into GAA HQ this afternoon - as part of 'Drop Allianz' Campaign. Allianz's business relationships with Israel are enabling the genocidal and apartheid Israeli regimes across Palestine. — Irish Sport for Palestine (@Sport4Palestine) August 20, 2025 A report published on the website of the Office of the High Commissioner for Human Rights at the UN listed Allianz among companies and corporations that was buying Israeli treasury bonds, which, the report argues, play a 'critical role in funding the ongoing assault on Gaza'. The report was written by UN special rapporteur (independent human rights expert) on Human Rights in the Occupied Palestinian Territories, Francesca Albanese. The 42 contacted the GAA for comment but did not receive a response at time of publication. Allianz, in a statement to The 42, said: 'Our long-standing partnership with the GAA is about supporting Irish sport and communities. 'Allianz Ireland is part of a global group, and while the wider group operates internationally across insurance and investment, as a matter of principle we do not comment on individual customers or business matters. 'What we can say is that all Allianz business decisions are guided by strict legal standards and world-leading ESG principles.'
Irish Times
5 hours ago
- Irish Times
The Irish Times view on the US/EU trade statement: some certainty on tariffs
It is unlikely that for as long as US president Donald Trump is in power the environment for trade will ever be settled. Potential chaos will always be around the corner. However, it is important to recognise the better days, too, and yesterday falls into this category. The agreed EU/US statement on trade – following the handshake deal more than three weeks ago between Trump and European Commission president Ursula von der Leyen – is first of all important in and of itself. Initially expected within days of the meeting in Scotland, its nonappearance had raised fears that both sides were not on the same page. Now, an agreed piece of paper with important details has been signed off in Brussels and Washington. And some of the detail suggests that the EU side may have got more from the deal than some have suggested. Time will tell. In particular, a commitment to cap tariffs on pharmaceuticals and semiconductors at 15 per cent removes some uncertainty. There had been fears of higher tariffs in these areas following special studies being undertaken on them by the Trump administration. READ MORE Presuming the deal sticks, this will not now happen, while some areas of pharma will be excluded altogether. That said, as with other sectors, tariffs impose costs on consumers and producers and are a no-win policy approach. The 15 per cent tariffs on many exports – and the expectation of something similar on pharma – will be a burden on exporters. They will also damage the US economy and push up prices. Trump's tariff agenda is still bad news for Ireland and uncertainties remain about the impact of his wider industrial policy. But the codification of large elements of the US/EU deal at least keeps this process on track and avoids a transatlantic trade war. It also gives some more clarity to key sectors of the economy and raises hopes that the worst can be avoided. More battles and uncertainty remain ahead, but the publication of the joint statement is a positive step.
Irish Post
6 hours ago
- Irish Post
Ireland welcomes confirmation of all-inclusive 15 per cent tariff in EU-US joint statement
A 15 PER CENT tariff on EU goods being imported into the US will apply to all sectors it was confirmed in a statement issued today. The EU-US Joint Statement on Trade, released this morning, confirms a 15 per cent tariff ceiling on EU goods exports to the US inclusive of existing US Most Favoured Nation tariffs, except where these are already higher. Tánaiste Simon Harris has welcomed the clarification provided in the statement, which he claims provides a 'first step' to further negotiations. 'We note the Joint Statement is now published following weeks of negotiation,' Mr Harris said today. 'We welcome clarity that the deal includes a single, all-inclusive 15% tariff on EU goods. 'We also now have assurance that this rate will extend to pharmaceuticals and semiconductors,' he added. 'This provides an important shield to Irish exporters that could have been subject to much larger tariffs pending the outcomes of Section 232 US investigations into these sectors.' Today's joint statement also includes 'zero for zero' tariff rate carve outs for aircraft and aircraft parts and 'leaves the door open for negotiation of further tariff reductions in the future on products of strategic common interest' Mr Harris's office explained. 'As the Statement makes clear, this is a framework agreement which gives us a first step to negotiate a more comprehensive and formal agreement with the US in the future,' the Tánaiste said. 'Our intention now is to see what other carve outs can be made in areas of interest for Irish exporters.' The Joint Statement also commits to future work in areas such as mutual recognition agreements on standards and conformity assessments, overcapacity in the steel and aluminium sector, and cooperation on critical raw materials. 'While the deal finally provides certainty, we also are acutely aware of the impact of higher tariffs and the existing difficulties that many Irish exporters have already faced this year,' Mr Harris said. 'In that regard, we also must continue to control what we can control and continue to make our country, and our European Union, as competitive as possible, as good a location as possible to invest in and create jobs. 'We must also look for other opportunities to diversify markets for Irish business. While we want to continue to do business with the US and indeed want to grow business. It is important that we take every opportunity to identify new markets." Next Monday, August 25, the Irish Government is due to publish its new Market Diversification Action Plan. Speaking after today's statement was issued, EU Commissioner Maroš Šefčovič said the statement "carries considerable weight and is truly impactful at a time when the trade landscape has completely changed". "Our transatlantic relationship is one of the largest economic partnerships in the world," he explained. "And this agreement has a clear, common goal – to put it on solid ground and help drive reindustrialisation on both sides of the Atlantic. We want to fully unleash the potential of our combined economic power. "But this is not the end. It is the beginning. This framework is a first step – one that can grow over time to cover more sectors, improve market access, and strengthen our economic ties even further." He added: "A 15% all-inclusive tariff cap for the EU: this is the most favourable trade deal the US has extended to any partner. "A wide range of sectors – including strategic industries, such as cars, pharmaceuticals, semiconductors and lumber – will benefit from this cap." See More: EU, Ireland, Joint Statement, Tariffs, Tánaiste Simon Harris, US
