Ireland’s EU Commissioner Michael McGrath is set to raise the issue of the fuel protests at an emergency meeting of the European Commission tomorrow morning.
It is understood that Mr McGrath has been in contact with senior Commission officials over the weekend regarding a letter sent late last week by Taoiseach Micheál Martin and Tánaiste Simon Harris to Commission president Ursula von der Leyen, requesting flexibility in EU rules to allow reductions in fuel excise duties, reports RTE.
Mr McGrath told RTÉ News this evening that it was “important that member states including Ireland are given the necessary flexibility at this time to support citizens and critical sectors from the effects of the international energy crisis,” reports RTE.
The Government is seeking additional flexibility from the European Commission to reduce excise rates on agricultural diesel, it is understood, reports RTE.
Under Article 19 of the Energy Tax Directive, member states are permitted to request further exemptions or reductions “for specific policy considerations” beyond the directive’s minimum excise levels.
The Government has announced a further 10 cent cut in excise duty on petrol and diesel, along with a 2.4 cent reduction on agricultural diesel—also referred to as marked gas oil or green diesel—effective from midnight on Tuesday, subject to Oireachtas approval, reports RTE.
Commissioner McGrath said he had been engaging with “relevant Commission colleagues” over the weekend to ensure there was “a full understanding of the seriousness of the situation in Ireland.”
The European Commission is due to hold an emergency meeting tomorrow morning to discuss the implications of the conflict in the Middle East, reports RTE.
Mr McGrath said he would brief the Commission on developments in Ireland during the meeting. He told RTÉ News that the Commission is preparing a broader package of measures to address the energy crisis, which is expected to be finalised soon.
Under the Energy Tax Directive, member states must currently apply a minimum excise duty rate to petrol and diesel, reports RTE.
Ireland previously secured a three cent reduction in the excise duty on agricultural diesel as part of the initial set of measures.
It is understood the Government is now aiming to reduce the “non-carbon” portion of the excise duty to zero, reports RTE.
To implement such a reduction, the Government would require approval from Brussels under the directive.
The Government is also requesting further concessions from the European Commission for the agriculture sector, similar to supports granted to the haulage sector, to ensure compliance with the Energy Tax Directive, reports RTE.
It is understood the Government is hoping for a prompt reply to the letter.
However, there may be some hesitation among senior European Commission officials to allow significant flexibility in taxation compared to the response during the energy crisis triggered by Russia’s invasion of Ukraine in 2022, reports RTE.
One source indicated that the Commission is inclined to act “prudent” given that the EU’s fiscal and economic position is currently weaker than it was during both the COVID-19 pandemic and the Ukraine invasion.
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