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Fuel · 12 August 2026

Diesel jumps 19c in August as AA Ireland warns pump prices are not at their peak

AA Ireland’s latest survey puts diesel at an average €1.92 a litre — 19 cents above July — and petrol at €1.84, up 9 cents. Excise did not move this month. The 1 September and 1 October tax steps that were on the published calendar will not go ahead — confirmed 21 August. November, December and carbon tax were not cancelled.

News report 12 August 2026
€1.92
Diesel /L (AA Aug avg)
€1.84
Petrol /L (AA Aug avg)
+19c
Diesel vs July
+€9.50
Extra per 50 L diesel fill
Paused
1 Sept + 1 Oct excise steps
Update — 22 August 2026
The Government confirmed on Friday 21 August that the 1 September and 1 October excise steps will not go ahead. Temporary 27c/32c cuts stay for now; a Dáil financial resolution is still required. November, December and carbon tax were not cancelled. Full follow-up: Government scraps the 1 September fuel hike. The AA August survey below is unchanged.
Two clocks, not one
Clock one: global wholesale prices, which already lifted August averages. Clock two: Irish excise — the 1 September and 1 October steps are paused; the published November and December steps were not cancelled on Friday. Mixing them up is how a 19-cent diesel jump gets blamed on a tax that has not yet moved.

What AA Ireland measured

AA Ireland’s August fuel-price analysis, as carried by CompleteCar (12 August) and the Roscommon Herald (11 August), puts:

  • Diesel at an average €1.92/L, up 19 cents from July’s €1.73 — about 11%.
  • Petrol at an average €1.84/L, up 9 cents from July’s €1.75 — about 5%.
  • On a 50-litre fill: roughly €9.50 extra for diesel, €4.50 extra for petrol. Across four fills in a month, AA Ireland’s arithmetic is an extra €38 diesel /€18 petrol.

RTÉ (11 August) reported the same litre prices and the same 50-litre extras. The Irish Times URL dated 12 August carries the same 19c / 9c headline; its byline timestamp is the evening of 11 August.

These are survey averages, not a legal maximum. Motorway service stations typically sit above supermarket forecourts. If your local diesel is €1.99, you are not “wrong” — you are off the mean.

Why August moved without a tax change

An AA Ireland spokesperson, quoted by CompleteCar and the Roscommon Herald, said: “This is a significant month-on-month increase, and motorists should understand where it has come from. Excise duty did not change during August, so what drivers are seeing at the pumps reflects global market conditions rather than any change in tax. Diesel has borne the brunt of it this month.”

RTÉ attributed the wholesale move to oil prices that “have risen again after hopes of a peace deal between the US and Iran receded.” Extra.ie (12 August) went further and named restricted traffic through the Strait of Hormuz. That Hormuz wording is Extra.ie’s framing, not the AA quote. odo.ie treats the AA line — global market conditions, not Irish tax — as the confirmed domestic fact, and the geopolitics as the reported cause of the wholesale move, with RTÉ and Extra.ie differing on how specifically they name Iran.

One reconciliation for anyone who still has May 2026 figures in their head: AA Ireland’s own May survey was petrol €1.82 and diesel €1.97 (RTÉ, 14 May). At the time, odo.ie’s fuel calculator used a more conservative May pair of petrol €1.82 and diesel €2.05— in line with late-April Oil Bulletin prints, not AA’s May diesel. Those calculators now default to AA Ireland’s September 2026 averages (petrol €1.87/L, diesel €1.94/L). August’s AA diesel of €1.92 was therefore below both May diesel series even after the 19-cent rebound. July’s €1.73 diesel briefly sat under petrol (€1.75). August put diesel back above petrol. The news is the jump from July, not a new all-time Irish high.

The published excise unwind — later paused

In April, after protests by farmers and hauliers, the Government deepened temporary fuel-excise cuts to 32c/L on diesel and 27c/L on petrol (RTÉ). Those cuts, including a reduced NORA levy, were later extended in full to 31 August (Roscommon Herald / CompleteCar).

CompleteCar published the four-step restoration as it stood in mid-August. On 21 August the Government cancelled the first two rows. November and December were not cancelled:

MonthPetrolDiesel
September+9c+10c
October+8c+8c
November+5c+7c
December+5c+7c
Total (published)+27c+32c

Those totals match the temporary cuts. In other words, the published path is an unwind, not a new tax. The Irish Times noted the same first step and the same October “8 cents for each” plus November/December 5c petrol / 7c diesel. Status as of 22 August: September and October will not go ahead. November and December were not cancelled. See the 22 August follow-up.

The AA spokesperson added, as of mid-August: “From 1 September, excise begins to be restored in stages, starting with 9 cents on petrol and 10 cents on diesel. If wholesale prices hold where they are, motorists should plan for further increases through the autumn rather than expect this month to be the peak.” That 1 September line is now outdated — the Government cancelled the September and October steps on 21 August.

Arithmetic, not a forecast
If August AA averages held still and every remaining published excise step landed, the December picture is smaller than this box first implied. Extra.ie wrote that a full restoration “would send both diesel and petrol to well above €2 a litre.” That was conditional on two ifs. Wholesale can fall. The first two ifs — 1 September and 1 October — are now off. November, December and carbon tax are not.

What it costs a typical driver — labelled as illustration

Using AA August averages and odo.ie’s usual planning assumptions (17,000 km/year; petrol 6.5 L/100 km; diesel 5.0 L/100 km):

  • Petrol: about 1,105 litres/year × €1.84 ≈ €2,033/year — roughly €99 more than the same litres at July’s €1.75, if August prices lasted a full year.
  • Diesel: about 850 litres/year × €1.92 ≈ €1,632/year — roughly €162 more than July’s €1.73 on the same litres.

Those are illustrations, not your bill. High-mileage vans and 35,000 km sales reps scale linearly. A supermarket-forecourt habit can claw back several cents a litre. Home-charged EVs do not buy these litres at all — which is why this week’s SIMI July EV-registration record sits in the same news cycle.

Protests, VAT and the delay call

RTÉ reported opposition parties urging a postponement of the excise unwind. Sinn Féin TD Darren O’Rourke said it “absolutely shouldn’t happen,” calling fuel a non-discretionary spend in a cost-of-living crisis. Aontú leader Peadar Tóibín, quoted by both RTÉ and Extra.ie, said: “These excise hikes must be halted,” and that there is “already talk on the ground people will take to the streets again.”

Fuels for Ireland chief executive Kevin McPartlan told Extra.ie the industry body was warning Government that prices could go “significantly higher than the prices that brought those people out onto the streets,” while stressing his organisation “did not support the tactics” of the April protests. He also said many garages make little or no margin on the litre and live on shop sales. Fuels for Ireland, per RTÉ, called a full unwind “reckless.”

On the Exchequer side, Extra.ie cited an expected Government VAT take on fuel this year of €1.67 billion. RTÉ cited Department of Finance figures of €328 million in VAT on diesel and petrol in the first five months, concentrated in April and May when pump prices jumped, and a 2025 full-year estimate of €1.035 billion. A Department of Finance spokesman, quoted by Extra.ie, said the Government’s support package now totalling over €1 billion was helping at the pump, and that “the situation remains fluid.” RTÉ’s Government spokesperson said the support package since the latest Middle East conflict is “significantly larger than the increased VAT received by the Exchequer.”

What to watch

Three public signals matter more than Facebook screenshots of a single forecourt: AA Ireland’s next monthly average; the Dáil financial resolution (reported target Friday 28 August) that has to lock in the Sept/Oct pause; and whether wholesale oil eases if diplomacy moves. On 21 August the Government cancelled the 1 September and 1 October steps. Until the Dáil votes, treat that as political confirmation still waiting on law. Budget the litre you are actually paying, not last May’s print.

How odo.ie is covering this
Our fuel cost calculator now defaults to AA Ireland’s September 2026 averages (petrol €1.87/L, diesel €1.94/L). Override the €/L fields with this week’s receipt for a personal figure. Log fill-ups in odo.ie and the €/100 km becomes yours, not a survey.

Pump prices move. Your log should too.

Record every fill and odo.ie turns receipts into real €/100 km — so the next spike is a number, not a guess.

Fuel-up logging Real €/100 km Solo free for one car

Sources

  • AA Ireland August 2026 fuel-price analysis, as reported by CompleteCar (12 August), Roscommon Herald (11 August), RTÉ (11 August) and the Irish Times (11–12 August)
  • RTÉ (14 May 2026) — AA May survey: petrol €1.82 / diesel €1.97
  • CompleteCar — four-step excise restoration table (Sept–Dec cents)
  • RTÉ — April cut depths (32c diesel / 27c petrol); VAT €328m in first five months; 2025 VAT estimate €1.035bn; O’Rourke and Tóibín quotes; Government spokesperson on the €1bn+ support package
  • The Journal (5 August 2026) — Jack Chambers: unwind still the plan; early-September assessment if prices rise (predates the 11 August AA survey)
  • Extra.ie (12 August) — McPartlan / Fuels for Ireland; Tóibín; €1.67bn VAT take cited; Hormuz framing (Extra.ie’s, not AA’s quote)
  • Update 22 August 2026 — Government cancelled the 1 September and 1 October excise steps; see the follow-up

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