Motorists will face an increase in fuel costs for their vehicles due to the government’s rise in excise duty rates, which will come into effect from midnight tonight, reports RTE.
The rate of excise duty on petrol will increase by 7 cents per litre and diesel by 5 cents. Diesel oil for agriculture will increase by 1 cent.
It is the second of three excise tax hikes aimed at easing a cut introduced in March 2022 to counter rising prices in the wake of Russia’s war in Ukraine.
Even if the excise duty increases from midnight, the price hike will not be immediate at all pumps.
This is because bulk fuel supplies are subject to excise duty, and it may take several days for many stations to sell existing fuel stocks purchased at lower excise rates.
On the other hand, some stations with high turnover make daily wholesale purchases and in such cases, retail prices will increase almost immediately, reports RTE.
The increase comes despite numerous calls for the government not to introduce them or at least postpone them until next year.
The Irish Petrol Retailers Association (IPRA) expressed dismay at the growing rate.
“When global oil costs are increasing, now is not the time to stretch struggling families and businesses even further. This the second of three scheduled increases that the Government had planned and will almost certainly negate any work that has been done to decrease back-to-school costs for families as they will be paying more for transport. In the run up towards Christmas, families are struggling enough without paying more for their fuel. Many have no alternatives but to use their cars for work and to get children to and from school and childcare”, said David Blevings, spokesperson for the IPRA, reports RTE.
The Irish Farmers’ Association called for the increases to be suspended indefinitely.
Its Farm Business Chair Rose Mary McDonagh said: “I am calling on Minister Michael McGrath to reconsider the timing of this increase in excise duty and announce an indefinite extension immediately. At a time of a cost-of-living crisis and stubbornly high inflation, it seems unconscionable the Government would proceed with imposing further taxes on already stretched families,” reports RTE.
Tell us your thoughts in the Facebook post and share this with your friends.