Drivers will face higher prices at the pumps from today as the Government’s excise cuts are reversed for the first time.
As fuel prices reached record levels in March last year, the Government announced that it would cut excise duty on petrol and diesel in a bid to bring prices down. This was later extended in September’s Budget.
When it announced its cost of living supports in February, the coalition said that it would phase out the excise duty cuts gradually. The restorations will take place today, on September 1 and October 31.
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Speaking to the Irish Mirror, Paddy Comyn, Head of Communications with the AA, explained that as fuel prices are much lower than they have been, the increase may go unnoticed by some. However, he said that any increases during a cost of living crisis are unwelcome.
He explained: “The increase is going in three stages. It will be 5c per litre of petrol and 6c per litre of diesel from June 1. In percentage terms, it is a 3.8% increase for petrol and a 3.4% increase for diesel.
“At the moment, the average prices are €1.55 for petrol and €1.45 for diesel, roughly. They are at the lowest they have been since September 2021. This will start to bring them back up again.
“I don’t think people are really paying that much attention to it because prices aren’t that high currently. It might be a little bit under the radar.
“But, overall, by October 31 it is going to have increased by 13.4% for petrol and 10.9% for diesel. It is quite an increase, it is just that it is broken up into segments.
“It is unwelcome, but because the prices are ‘reasonably’ low, people maybe aren’t as concerned as they could be if they were up closer to €2. It is a shame that this is being brought back when public transport isn’t quite where it should be.”
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The Consumer Association said the move makes no sense. Spokesman Michael Kilcoyne said: “If this fuel is being used for carrying product to the supermarket, then the only one that can pay for it is the consumer. The consumer is going to have their goods increased so that whoever is transporting it can recover the costs. It means there will be further inflation as a result of this.”
Speaking in the Dail on Tuesday, Taoiseach Leo Varadkar defended the excise restorations when quizzed by Aontu leader Peadar Toibin. Mr Varadkar said: “We reduced excise on petrol and diesel by 15c to 20c at a time when it was 500c per litre at the pumps. It has come down considerably now. It is approximately €1.40 or €1.50.”
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