Lobby association Fuels for Ireland has raised a red flag regarding a proposed hike in excise duties on petrol and diesel starting Monday. The increase, it claimed, would contribute to the already grappling cost-of-living complications for consumers and entrepreneurs. Therefore, the association urges the concerned authorities to postpone the planned raise in August until the forthcoming budget, at the very least.
The upcoming hike will see a 4p boost in the per litre cost of petrol from Monday, and a 3p surge for diesel. Anticipated similar increments are slated for August. The association’s call for the deferment echoes the plans of represented fuel outlet owners such as Applegreen, Certa, Circle K, Greenergy, Irving Oil, LCC, Maxol, Top Oil, and Valero. They urged the creation of a taxation expert group to review the consequences of financial policies pertinent to energy.
The public coffers saw a slash in excise duties on petrol, diesel, and marked gas oil back in March 2022. This action by the government was meant to relieve households and commercial entities grappling with the inflation aftermath of Russia’s incursion into Ukraine and a consequent surge in global energy costs.
Originally, the temporary cuts were set to expire on August 31, 2022. However, this deadline was later pushed further. In the 2024 budget, Finance Minister Michael McGrath proposed that these deductions would remain effective until March 31, 2024. However, a gradual reinstatement was proposed across two specified dates, April 1 and August 1 this year.
Fuel resale operators and fuel outlets would be left with “no other option” but to adjust fuel prices in accordance with the government’s decision, noted Kevin McPartlan, Chief Executive Officer of FFI. There is an unwelcome surprise awaiting Irish consumers with a surge in fuel prices rippling across the country.
The decision is most likely to deeply impact Border counties due to the price disparity between Ireland and UK, compromising the sustainability of local fuel outlets. The proposed increases over the course of the next year could create a two-fold fuel economy, further straining the cost-of-living challenges for citizens.
FFI has pushed for the inception of a taxation expert group to study financial policies pertinent to energy. This group will also have to address concerns about the sustainable energy transition, preserving state revenue, and the cost-effectiveness for the buyer. To adequately establish this group, FFI recommends the proposed April 1 fuel tax increase should be the final one until the 2025 budget, likely to be unveiled in October.
A representative from the Finance Department informed that the overall cuts in excise duty from March 2022 have benefited consumers and enterprises by a staggering €1.2 billion. She mentioned that the government acknowledges the continuing struggles faced by households and businesses. However, it is determined to maintain an equilibrium between offering assistance and avoiding the boost of repetitive inflation patterns. Additionally, she confirmed that the government has no plans to postpone the predefined rise in April.