Drivers may notice a slow increase in the cost of filling their cars over the coming weeks as the National Oil Reserves Agency levy is reintroduced.
The NORA levy was temporarily done away with in Budget 2023, but this exemption to help cope with the rising cost of living came to an end today, March 1.
The levy was introduced when NORA was set up in 1996, as a means of funding the maintenance of holding 90 days of strategic oil reserves for use in an emergency.
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The levy will remain at €0.02 per litre and is paid by the oil companies to NORA.
This comes as the reduction in excise duty is due to be reinstated on a phased basis from June 1, according to the Irish government.
There are growing fears over the number of drivers who will end up queuing at garages nationwide in the days leading up to these increases, causing chaos.
In a bid to avoid a massive increase in the cost of fuel, officials opted for a phased re-introduction which will work as follows:
From June, rates will begin to be restored by 6c per litre of petrol, 5c per litre of diesel, and 1c per litre of marked gas oil.
On September 1, rates will increase by a further 7c for petrol, 5c for diesel, and 1c for marked gas.
The rates will then be fully restored on October 31, with a final increase of 8c for petrol, 6c for diesel, and 3c for market gas oil.
Fuels For Ireland chief Kevin McPartlan backed the gradual price increase and said doing it this way will avoid potential chaos.
He said: “I think it’s really important that we don’t have any particular day where fuel goes up very dramatically.
“All that will do is create a spike in demand as we approach that period of time, which makes managing of stocks really really difficult.
“You might end up with garages running out of stuff.”
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