Big boost in sight for thousands as government considers extending cost-of-living measure

Irish motorists are in for a BIG boost following government concerns about the rising cost of petrol and diesel.

Officials are expected to extend current motor fuel excise duties beyond the end of the month when they were supposed to be finalized.

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The cost-of-living measure was introduced last year to reduce the cost of driving after prices skyrocketed.

Although Fianna Fail and Fine Gael appear to support the move, Green Party leader Eamon Ryan has indicated he doesn’t think the cuts in the service should be extended beyond February.

The consumption tax cuts can reduce the cost of a liter of petrol by 21 cents and a liter of diesel by 16 cents.

They were introduced last year and extended until February 28 in the 2023 budget.

Concerns were also raised about the introduction of carbon tax hikes in May, which could further impact travel costs.

The government is due to start talks next week on a range of cost-of-living measures that are due to expire on February 28.

These include VAT reductions on energy bills and the hospitality and tourism sector.

It comes as Treasury Secretary Michael McGrath has hinted that fresh support for the cost of living could be just around the corner, with an announcement expected in the next two weeks.

The ECB today raised its borrowing rate from 2.5 percent to 3 percent – the fifth time it has raised its interest rate in the past year.

The move will be an immediate hit to tracker mortgage holders, whose loan payments are set to start rising again in the coming weeks.

For someone with a $150,000 tracker mortgage, the new rate hike adds an additional $35 to monthly repayments.

The ECB also hinted that it is likely to hike rates by another 0.5 percent in July when it meets again.

The bank raises interest rates to slow inflation, causing prices to rise throughout the economy.

Communications director for price comparison site Bonkers.ie, Darragh Cassidy, said the ECB’s move could put pressure on Irish banks to increase their own fixed-rate mortgages for new customers.

He said: “The ECB has hiked rates by three percentage points since last July.

“However, AIB and Bank of Ireland have only increased their fixed rates for new customers by one percentage point.

“And the PTSB has raised its fixed rates by an average of just under one percentage point.

“So there are clearly further increases underway.

“However, with Irish mortgage rates initially high, banks could spare us the full burden of ECB hikes.”