Motorists can expect the cost of petrol and diesel to rise from midnight as the government’s consumption tax cuts begin to take effect, reports RTE.
Petrol prices will rise by six percent per litre and diesel by five cents. Agricultural diesel will also increase by a hundred.
In March last year, as fuel prices continued to rise, the government acted and reduced the excise duty on fuel.
The cuts meant a 21 cents per litre cut in petrol costs and a 16 cents cut in diesel costs.
The excise tax hike will become law from midnight, but not all fuel dealers should have to add it to retail prices immediately, reports RTE.
This is because fuel stocks purchased from forecourts are subject to excise duty and existing forecourt stocks are subject to excise duty at the lower rate.
The Minister for Public Expenditure and Reform told the Dáil that the government is increasing the excise tax on fuel because fuel costs are “significantly less” than when the tax was introduced, reports RTE.
Two more excise duty hikes are planned for September 1st and October 31st. By then, fuel consumption tax rates will be fully rolled back to early 2022 levels.
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