Diesel and petrol prices to increase from midnight as Taoiseach defends excise rises

A reintroduction of the excise duty on petrol and diesel will see prices begin to increase at forecourts across the country from midnight tonight.

From June 1, petrol will increase by 6c per litre and by 5c per litre for diesel.

As part of cost-of-living measures, in March 2022 Government announced a temporary reduction in the excise duties charged on petrol and diesel.

Excise duty was reduced by 20c per litre of petrol and 15C per litre of diesel.

The measures were due to expire on August 31, 2022, but were later extended.

In February, the Department of Finance confirmed that the reintroduction of the fuel tax would begin on phased basis from tomorrow.

On September 1, rates will increase by 7c for petrol and 5c for diesel.

Meanwhile, on October 31 rates will be fully restored with an increase of 8c for petrol and 6c cent for diesel.

It comes as earlier this month, diesel and petrol prices fell to lowest levels since September 2021.

Fuels For Ireland CEO Kevin McPartlan said some customers will begin to the see the increases in petrol and diesel prices from tomorrow morning.

“Each individual site [business] will have its own pricing decision to make,” he told RTÉ’s Morning Ireland.

“Anything that is delivered from midnight today will have that extra excise duty applied to it,” he added.

“We would expect, and it would be normal, that prices would take a little bit of time to wash through to forecourt level, on a macro level, but some people will see a forecourt with an increased price from tomorrow morning because they’ve had deliveries overnight.”

Aontú TD Peadar Tóibín said the Government was hitting ordinary people again at the height of a cost of living crisis.

The Taoiseach said excise rates were being restored because wholesale and retail prices for motoring fuels had fallen sharply since Vladimir Putin first waged war on his neighbour.

And he said the Government had given a huge amount back to consumers in response to the price pinch.

Mr Tóibín said: “There are so many families who are in arrears on energy bills, and this move is the opposite of what has to be done.”

Figures released to him following parliamentary questions have shown that the Government is actually “taking in huge revenues off the backs of suffering families in the middle of a cost of living crisis,” he said.

“Last year saw more taken, in terms of VAT and various other taxes, on electricity, gas, home heating oil, petrol, diesel and solid fuel.

“Total revenue was more than in any year since 2018 — €294 million more was taken in these taxes than in 2021, and that’s not to mention the increase in carbon tax,” Mr Tóibín said.

“Given this, are you really going to kick families when they are down? when they’re suffering from the cost of living crisis, and increase excise duty in two days time?”

Leo Varadkar said in reply: “We reduced excise and petrol diesel by 15 to 20 cents in the past year.

He agreed that the State has “taken in a lot of revenues from VAT on petrol and diesel, and on gas and electricity.

“That’s true, but it’s also been given back as well,” he said.

“The TBESS scheme for business has a big budget, and the energy credits for households — €600 per household – have been paid for 2 million homes.

“That has come to €1.2 billion, given back in energy credits alone.”

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *