Motorists hit with major new fuel price increase – – Our News, Your Views

Motorists hit with major new fuel price increase

Motorists will be hit by a price increase of 4 to 5 cents per litre for diesel and petrol from the New Year onwards as biofuel blending requirements and associated legislative delays change.

Effective January 1, 2023, fuel distributors will be required to increase their Renewable Transport Fuels Obligation (RTFO) rate to 16.98 percent from the current 13 percent.

This aims to support the sector in achieving a 50 percent reduction in CO2 emissions by 2030.

While the Department for Transport says fuel distributors have “a variety of methods” to apply for this change, in line with a “marginal” price increase of 1c per litre, it is understood that the issuance of certificates linked to these measures and “are delayed awaiting supporting legislation”.

As a result, companies and fuel suppliers across the country have received letters from suppliers in recent days informing them of an increase of 4 to 5 cents per liter on petrol and diesel from tomorrow, also raising concerns that green diesel could be used for agricultural purposes and for household heating, oil will also be affected.

A well-placed industry source told the Farming Independent: “We run dozens of lorries and hundreds of machines, our diesel bill went from €390,000 in February to €750,000 in March, to €800,000 in October. These new increases will mean another €27,000 extra per month for us. I’m watching the oil prices every day and the very minute it goes up 1pc we’re getting a 4/5cpl price increase from oil suppliers – there has to be price gauging going on,” reports Independent.

Independent TD Michael Fitzmaurice said: “The delay or lack of legislation is giving a free hand to the importers or retailers of fuel. Instead of an increase allegedly intended to be around 1c a litre, motorists now will be hit with between 5-6c if you include VAT,” reports Independent.

In a statement, a spokesman for the Ministry of Transport said: “To achieve a 50pc reduction in carbon emissions by 2030 the Climate Action Plan target is to raise the blend proportion of biofuels in road transport gradually to achieve at least B20 (biodiesel) in diesel and E10 (Ethanol) in petrol by 2030,” reports Independent.

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