Lobby group Fuels for Ireland has warned that an increase to excise duties on petrol and diesel from Monday will exacerbate cost-of-living challenges for consumers and businesses, and called for a planned increase in August to be deferred until at least the next budget.
The first of these increases takes effect from Monday, including a 4 cent rise in the price of a litre of petrol, and a 3 cent rise in the price of diesel. Similar hikes are also planned for August.
FFI, which represents forecourt operators Applegreen, Certa, Circle K, Greenergy, Irving Oil, LCC, Maxol, Top Oil and Valero, has reiterated calls for an expert group on taxation to be established to examine the impacts of fiscal policies related to energy.
In March 2022 the Government reduced excise duties on petrol, diesel and marked gas oil to help households and businesses dealing with rising inflation post Russia’s invasion of Ukraine and a spike in energy costs globally.
The temporary reductions were initially due to end on August 31st, 2022, but were subsequently extended. In Budget 2024 the Minister for Finance Michael McGrath provided that the reductions would last until March 31st, 2024, with a phased restoration across two dates, April 1st and August 1st this year.
FFI chief executive Kevin McPartlan said fuel retail operators and forecourts would have “no alternative” but to raise prices in line with the Government’s decision. “It is not an April Fool’s story, and Irish consumers wake up to unwelcome news today as fuel prices surge across the nation.
“The immediate impact of this decision will be felt most acutely in Border counties, where the price gap between Ireland and the UK threatens the viability of local forecourts. With further increases slated over the next 12 months the prospect of a two-tier fuel economy looms large, exacerbating existing cost-of-living challenges for citizens.”
FFI has called for the establishment of an expert group on taxation to examine fiscal policies relating to energy, and to address concerns surrounding the sustainable energy transition, safeguarding State revenue and affordability for consumers. To give enough time to establish this expert group FFI has also called for April 1st to be the last tax increase on fuel until Budget 2025, which is likely to be delivered in October.
A spokeswoman for the Department of Finance said that in total the reductions in excise duty since March 2022 have been worth €1.2 billion to consumers and businesses. “The Government, while recognising that households and business continue to face challenges, believes it must strike the appropriate balance between providing support and avoiding fuelling cyclical inflationary trends,” she said, adding that the Government does not propose to defer the already legislated for April increase.
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
