The planned rise in excise duty on Friday (September 1) for all fuel types must be “suspended indefinitely”, according to Irish Farmers’ Association (IFA) farm business chair Rose Mary McDonagh.
The Irish government’s temporary reduction in the excise duties charged on petrol, diesel and green diesel ended in June and the rates increased by 6c for petrol, 5c for diesel and 1c on green diesel.
From this Friday, the rates will increase by 7c for petrol, 5c for diesel, and 1c for green diesel.
By October 31, the excise duties rates will be fully restored with an increase of 8c for petrol, 6c for diesel and 3.4c for green diesel.
According to figures from the AA, petrol and diesel prices have been fluctuating this year, and have been rising for the past month. Prices for August are at the highest they have been so far this year.
Pump price for petrol in August was 166c/L and for diesel 175c/L, according to AA figures.
McDonagh said: “At a time of a cost-of-living crisis and stubbornly high inflation, it seems unconscionable that the government would proceed with imposing further taxes on already stretched families as we approach the autumn and winter period.”
McDonagh is calling on Minister for Finance, Michael McGrath to “reconsider” the timing of this increase in excise duty.
Rural Independent TDs are also calling on the government to rethink its plan.
Deputy Mattie Mc Grath said: “With back to school expenses, groceries getting pricier, and mortgage rates going up, families are really struggling. Adding fuel tax hikes to this mix is just plain wrong.
“Waiting until the October budget to talk about this is no good, especially since the first increase is already here. We can’t keep squeezing family budgets.”
Fuel popularity in Ireland
Recently published figures from the Statista Research Department show a decline in the overall number of diesel cars sold in Ireland and a corresponding growth in electric car sales.
The figures look at 2017-2021, and highlight that in 2020, over 38,000 diesel cars were purchased by drivers in Ireland. In 2021, this figure dropped to just over 35,000.
In 2020, just over 4,000 electric cars were purchased. This figure grew to over 8,500 in 2021.
The number of petrol cars sold increased slightly from 32,601 to 33,751 for the same period.