Excise duty hike is stealth tax on hard-pressed consumers – Fuels for Ireland
- Clock ticking on Ireland’s fuel prices: consumers face imminent and painful hikes
- With the Dáil going on summer recess FROM Thursday (July 11th), the New Minister for Finance needs to act swiftly
- Call for expert group on taxation to address energy fiscal policies
Fuels for Ireland (FFI), the representative body for fuel retailers providing 50% of Ireland’s total energy needs, urgently callED on the new Minister for Finance and the Government to postpone the planned excise duty increase on fuels set for August 1st. With the Oireachtas going on summer recess this Thursday, the Minister has mere days to take action to prevent an additional financial burden on consumers as well as putting jobs at risk in Border regions.
Excise duty was already hiked in April. With this further increase, the Government is simply gouging hard-pressed consumers.
Alongside this unfair imposition on drivers, forecourts near the border have seen a severe reduction in business since April 1st as consumers drive to Northern Ireland to fill up their tanks. A further tax increase risks the viability of businesses in these areas.
FFI is also flagging that in addition to the excise duty hike, there are other baked-in increases coming down the line. On Budget night, the already agreed carbon tax increase will add 2cpl, and then the increased level of the Renewable Transport Fuel Obligation will add another 2cpl on January 1st. Each of these is before VAT is applied, meaning a total increase of 5cpl to petrol and diesel in the next six months, even without the excise duty increase scheduled for August 1st.
On top of that, and despite the excise duty cut, the Government has not lost any tax revenue. In fact, they collected more in 2023 than ever before because VAT is a percentage of the pump price, and so high fuel prices mean extra income for the State.
FFI also repeats its call for the establishment of an Expert Group on Taxation to thoroughly examine fiscal policies related to energy. This multidisciplinary group would be responsible for addressing concerns surrounding the transition to sustainable energy, safeguarding state revenue, and ensuring affordability for consumers.
Kevin McPartlan, CEO of Fuels for Ireland, issued a stark warning: “The imminent increase in excise duty scheduled for August 1st will directly impact consumers, particularly in Border counties where the price gap with the UK is already causing significant challenges.
“On behalf of FFI and our members, I urge the Government to act now to prevent exacerbating these issues, as it is not fair for consumers to bear this additional burden. With the Oireachtas rising this Thursday July 11th, the Minister is short on time and needs to make a decision before the Dáil goes on summer recess. It is crucial to take immediate action. If no changes are made, the excise duty increase will proceed as planned.
“This issue should be a top priority on the new Finance Minister’s agenda. Postponing the excise duty increase and establishing the Expert Group on Taxation will demonstrate a commitment to balancing fiscal responsibility with consumer affordability.”
Fuels for Ireland membership is: Applegreen, Certa, Circle K, Greenergy, Irving Oil, LCC, Maxol, Top Oil and Valero
In March 2022, the Government reduced excise duties on petrol, diesel, and marked gas oil to mitigate the impact of global energy price spikes following Russia’s invasion of Ukraine. Originally scheduled to end in August 2022, these reductions were extended, with the final phased restoration planned for August 1, 2024. This will see an increase of 4 cents per litre for petrol and 3 cents per litre for diesel, further straining household budgets amid ongoing inflationary pressures.
