Government urged not to impose fuel excise tax increase this week
Opposition parties are urging the government not to impose another fuel excise tax increase planned for this week.
The second reinstatement of excise duty on Thursday (August 1) will see an extra 4 cents being added to the petrol price, diesel will increase by 3c/L and 1.5c/L will be added to marked gas oil (green diesel).
The government introduced a temporary reduction in the excise rates charged on petrol, diesel and green diesel in 2002 because of the impact of the war in Ukraine on global prices.
This week will see the final phase of excise rate restorations, following on from a similar move in April.
The leader of Independent Ireland, Michael Collins said that "continuing to raise prices during a cost of living crisis demonstrates the government does not care about ordinary people in Ireland".
"Taxing people with reckless abandon to fund pipe-dream programs is not just bad governance, it is economic malpractice.
“The government will tell you that the tax increase is just three cents, which is a drop in the bucket. It’s not a drop in the bucket, it is death by a thousand cuts,” he said.
Collins said that the government raised €3.2 billion in fuel excise taxes in 2023 – the highest on record.
“Just remember the next time you buy petrol, or eggs, or replace a window – that the reason for increased prices is the government’s irresponsible fuel excise taxes,” he said.
Sinn Féin spokesperson on agriculture and rural development, Martin Kenny has called on government TDs to explain the excise duty increase facing motorists on August 1st.
“We are in the midst of a cost of living crisis, yet they are happy to sit back and watch as another excise duty increase hits workers and families," he said.
“Carers need their cars to complete their duties. Workers in rural Ireland need to drive to work, and many drive for a living. Not to forget the local white vans that supply our grocery shops.
“To expect them to take these increases on the chin just shows how out of touch this government is with workers and families who are doing their best, but are being crucified by a cost of living crisis that shows no signs of slowing down," the Sligo-Leitrim TD added.
Kenny said that motorists living in the border regions will likely start buying their fuel in Northern Ireland, which will lead to a loss of revenue from excise duty.
“Fuel costs are already 30% higher than they were 3 years ago – which means the governments overall tax take is 30% higher.
“What we need here is a common sense approach towards these increases, and common sense will tell you it simply shouldn’t go ahead.
“If this government is insisting on pushing ahead with these increases, their TDs must explain why," he said.
According to the Jennifer Kilduff from the AA Ireland, average petrol prices rose slightly by 1 cent to €1.80/L, while diesel prices were up by almost 3 cents to €1.74/L in July.
“We saw a slight increase in petrol and diesel prices this month, which is not ideal for the motorist no matter how slight the increase.
"There is some good news this month however for Electric vehicle owners, they should see a reduction in their fuelling costs.
"This is largely due to the recent decrease in ESB charging rates as well as competitive 24-hour rates from energy provider YUNO Energy, she said.
