Fuels for Ireland (FFI), the representative body for fuel retailers has urgently called on the new Minister for Finance, Jack Chambers and the government to postpone the planned excise duty increase on fuels set for August 1.
With the Oireachtas going on summer recess this Thursday (July 11), FFI has said that the minister has “mere days to take action” to prevent an additional financial burden on consumers as well as putting jobs at risk in Border regions.
The organisation stated: “Excise duty was already hiked in April. With this further increase, the government is simply gouging hard-pressed consumers.”
FFI added that forecourts near the border have seen a significant reduction in business since April 1 as consumers drive to Northern Ireland to fill up their tanks and has argued that a further tax increase risks the viability of businesses in these areas.
Fuel charges
FFI has also said that in addition to the excise duty hike, there are other “baked-in” increases coming down the line.
On Budget night, it said that the already agreed carbon tax increase will add 2c/L, and then the increased level of the Renewable Transport Fuel Obligation will add another 2c/L on January 1.
Each of these is before VAT is applied, meaning a total increase of 5c/L to petrol and diesel in the next six months, even without the excise duty increase scheduled for August 1, according to the representative group.
FFI also repeated its call for the establishment of an Expert Group on Taxation to thoroughly examine fiscal policies related to energy.
The multidisciplinary group would be responsible for addressing concerns surrounding the transition to sustainable energy, safeguarding state revenue, and ensuring affordability for consumers.
Kevin McPartlan, CEO of Fuels for Ireland, issued a stark warning: “The imminent increase in excise duty scheduled for August 1 will directly impact consumers, particularly in Border counties where the price gap with the UK is already causing significant challenges.
“On behalf of FFI and our members, I urge the government to act now to prevent exacerbating these issues, as it is not fair for consumers to bear this additional burden.
“With the Oireachtas rising this Thursday July 11, the minister is short on time and needs to make a decision before the Dáil goes on summer recess.
“It is crucial to take immediate action. If no changes are made, the excise duty increase will proceed as planned.”