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Dáil
‹ Ceisteanna ar Pholasaí nó ar Reachtaíocht - Questions on Policy or Legislation

Fuel price and excise rise

Summary

Deputy Kerrane said the budget’s fuel changes would raise costs sharply for rural workers and families and asked for reconsideration. The Minister defended the excise adjustments as part of the wider carbon-tax trajectory and cheaper fuel market conditions.

The budget announced this week by the Minister will see the average cost of a tank of petrol or diesel rise by €12, making Ireland one of the most expensive countries in Europe for fuel. For workers and families in rural communities, particularly those such as mine in counties Roscommon and Galway, this will make it even more expensive to run a car, which is, of course, a necessity in many of these areas. It also makes it more difficult for young drivers who are starting out. This measure will hit rural communities hardest. Will the Minister reconsider the measure?

Comment on this

As a Government, we introduced temporary reductions in excise rates of 21% and 16% per litre of petrol and diesel, respectively, in 2022, when energy prices in our economy were very high. That was worth approximately €1.2 billion to consumers. We gradually changed excise rates as the global price of petrol and diesel fell. Fuel prices in our economy have fallen significantly. They were at highs of €2.10 per litre and €2.20 per litre and are now just over €1.64 or below €1.70, depending on the fuel station. The decision made on budget night is a part of the wider trajectory of carbon tax agreed by this House. It will add 2 cent to a litre of petrol and 2.5 cent to a litre of diesel.

What is interesting about the Sinn Féin pre-budget submission is that every year its representatives talk about removing the increase to property tax but every year, it is willing to spend the previous year's increase. Sinn Féin should clarify its position on the carbon tax that it wanted to abolish last year. It has not made provision for removing that tax. Sinn Féin is proposing an increase in the carbon tax on cars and the tax on petrol and diesel every year.

Comment on this

I ask the Minister to just deal with the issue.

Comment on this