THE cost of petrol and diesel could rise in March as the Government’s cuts in fuel excise duty are unlikely to be extended, Transport Secretary Eamon Ryan has hinted.
Earlier this year, after fuel prices skyrocketed due to the war in Ukraine, the coalition cut taxes by 20 cents a liter on petrol and 15 cents a liter on diesel.
This excise tax reduction should be reviewed in February next year to determine whether it needs to be extended.
In a Christmas roundtable last week, Transport Secretary Eamon Ryan hinted that the tax cut might need to be overturned – a move that would push up fuel prices in March.
Asked about the fuel excise duty, Minister Ryan said the government’s new finance secretary, Michael McGrath, would make the final decision in February.
But the Green Party leader claimed that funding from excise taxes on fuel could be an important revenue stream to help the government pay for other cost-of-living measures that he says need to be extended.
He said: “In my opinion, first of all, the fact that the price of oil, and therefore transport fuels, has fallen significantly will help us.
“People will remember you’ve almost gone to the forecourt for the past few months and the price has been around €2.10, €2.15 a litre.
“If I look now it’s €1.60, €1.70 or whatever, so it’s gone down dramatically.
“One of the most important things is that in this cost of living crisis, we maintain a reasonable economic approach so that we can afford the actions that we need to take, and with that economic approach, you can’t just rely on corporate tax because that isn’t self-evident, so we need … and excise taxes and things like that give us a really broad base.
“We need to look at that and see which ones can or will be reintroduced.
“I assume some of them have to be because we have to make sure we have the money for welfare, health and other household needs.”
Minister Ryan also said the transport industry – which has been hit hardest by skyrocketing petrol and diesel prices – will benefit from a new €18 million government support fund.
He said: “One of the things that could help us is that last week we agreed on further measures to support the transport industry.
“We have an €18 million program aimed at smaller transport companies that will come into effect around March. So if there is a refund of VAT, excise duty (and) other charges and I expect that will measure this compensated.”
https://www.thesun.ie/motors/9957854/ireland-petrol-diesel-price-shock-thousands-drivers-weeks/ Irish drivers hit hard as minister hints petrol and diesel tax breaks could end in WEEKS