It comes as the country moves into the back-to-school season which sees many children driven to school.
Unleaded petrol now averages €1.70 per litre, down from €1.73 in July.
And this month diesel averages €1.68 per litre, down from €1.69 in July.
EV charging at-home costs remain steady, according to the latest AA Ireland monthly fuel survey.
The fall in fuel prices comes at a time of other rising costs for motorists. Insurance premiums have been rising for two years now and there was a hike in toll costs this year.
Families are also grappling with surging food prices and energy costs going up.
Fuel prices are falling due to crude oil costs staying low. This is due to strong production from the both OPEC+ and non-OPEC countries.
This is coming at a time when there is weak global demand for crude oil due to sluggish economic growth in China, and a fear of a slowdown in the US.
OPEC+ recently announced that it will fully unwind its 2.2 million barrels per day of voluntary production cuts by September 2025, a full year earlier than planned.
Brent crude was trading at $63.88 yesterday, down from €78.71 in January.
Petrol prices are down slightly. Photo: Joe Giddens/PA
Today’s News in 90 Seconds – Thursday, August 28
The weakening of the dollar this year has also helped to keep forecourt fuel costs down. This is because crude is priced in dollars. A weaker dollar helps to make crude imports to this country cheaper.
AA Ireland said this was translating into a continued easing in petrol costs, offering a welcome break for motorists as summer as we head into back-to-school season.
Diesel prices have also reduced slightly.
The motoring organisation said that ESB electric vehicle public charging rates rose in July, but the cost of charging an EV at home has remained unchanged this month.
EV charging on-the-go costs with ESB e-cars remain at €0.66/kWh for high-powered chargers, following July’s increase.
Those prices will likely rise again in October, AA Ireland said.
Currently, public EV charging enjoys a reduced 9pc VAT rate, but this is set to return to the standard 13.5pc VAT rate on October 31 this year.
“August has brought some modest relief at the pumps, with both petrol and diesel recording a small decrease compared to July,” an AA Ireland spokesperson said.
“While these reductions may seem minor, they help ease the cost burden for households and drivers travelling during the end of summer holiday period.”
The spokesperson said stability in EV charging costs this month is also welcome news for those who made the switch to electric, although the recent on-the-go price adjustments still highlight the importance of planning longer journeys carefully.
AA Ireland reminded motorists that efficient driving habits can play an important role in keeping fuel bills down.
More than half of the price of a litre of petrol and of diesel at forecourts is made up of Exchequer taxes and levies.
Industry group Fuels for Ireland has called for an expert group to be set up by the Government to review the taxation on fuels ahead of the Budget.
It was revealed to the Dáil that the Exchequer is now taking around €4bn a year from taxes and levies on motor fuel and energy products.
Around €1bn of that is carbon tax, which has doubled in the last five years.