The potential surge in petrol and diesel prices, which was scheduled for August, is now under scrutiny, according to Taoiseach Simon Harris. He hinted in the Dáil that the anticipated fuel price hikes might not occur in August due to mounting pressure from Sinn Féin leader Mary Lou McDonald. McDonald criticised Harris’s claims of seeking to reduce the cost of living for financially strapped families as mere electioneering tactics.
McDonald alleged that the current government had exacerbated the struggles of families by sky-rocketing the cost of living. She criticised Harris’s participation in the Cabinet’s decision not to raise the core child benefit or qualified child payments to the necessary level. McDonald accused Harris of playing politics with the cost of living crisis, particularly as the election looms closer.
She questioned Harris’s sincerity towards the plight of struggling families, citing the continuous increase in petrol and diesel prices imposed by his government. McDonald suggested that to genuinely address the cost of living, the government should consider scrapping their plan to raise fuel prices in August and October.
Following Russia’s invasion of Ukraine and the global surge in energy costs, the government moved to alleviate strain on households and businesses by slashing excise duties on petrol, diesel, and marked gas oil in March 2022. Increases in these reductions started from April and are proposed to also roll out in August, which included a 4p increase in petrol prices and a 3p rise in diesel.
Despite his potential decision to review the August fuel price increase, Harris maintained that the planned bump in carbon tax in October would proceed as part of the climate change agenda. The 2022 temporary reductions were first set to conclude by August 31, 2022, but saw further extension. Finance Minister Michael McGrath made provisions in the 2024 Budget for these reductions to stay until March 31, 2024, with a gradual reinstatement set for two dates — April 1st and August 1st, within the year.
Ms McDonald drew attention to a Barnardo’s study which indicated the intense strain financial stability was placing on several homes. The research unearthed data which demonstrated that, in the past half a year, half the parents disclosed that they, or their children, have either done without or have had to reduce their basic needs such as food, clothing, medication, electricity, and heating.
Mr Harris, on the other hand, argued that the government is making noticeable strides in the realm of child poverty. According to him, the persistent poverty rate is currently lower for children than at any moment in the past since its tracking began in 2004, and the risk of poverty rate for youngsters is also at its most minimal point.
The Prime Minister also pointed out to the working class that the government is keeping a close watch for any potential hikes in the future, even as early as August. However, he cautioned about the alternative budget proposed by Sinn Féin which suggested reinstating the entire carbon tax by April.
He asked people to see through the false indignation exhibited by Sinn Féin. Pointing to the party’s alternative budget, he noted that Sinn Féin suggested extending the lower tax rate for petrol and diesel only until April, not August.