Farmers and fishermen are under “considerable pressure” to pay everyday bills and need the excise duty reduction extended beyond February, the Independent TD for West Cork, Michael Collins has warned.
“Fuel excise duty reductions are due to expire later this month. When they were announced last year, they took 20 cent per litre off petrol, 15 cent off diesel, and 2 cent off green tractor diesel.
“Families are struggling. Many of them are on the edge and sick with worry at the end of every week about where they will find the money to pay exorbitant energy bills, or pay to put food on the table for their families,” Deputy Collins told the Dáil.
The then Minister for Finance, Paschal Donohoe, announced a temporary reduction in the excise duties charged on petrol, diesel and marked gas oil last March.
These reductions in excise were expected to reduce the cost of a fill of a 60 litre tank by €12 for petrol and €9 for diesel.
Following the reductions there were complaints made to the Competition and Consumer Protection Commission (CCPC) that there had been a delay in the excise cut being passed onto consumers.
CCPC analysis attributed this to volatility in the underlying cost of fuel and because of differences in stock levels and differences in the supply arrangements between fuel stations and their suppliers.
Fuel excise duty reduction
Deputy Collins told the Dáil that the price of fuel is starting “to creep up again” and people have seen that “on the pumps in the past couple of days”.
He asked the Tánaiste to assure the Dáil that the excise duty reduction would be extended.
“It is vital that the fuel excise duty reduction is kept fully in place for the coming 12 months.
“If removed, fuel will shoot up to the same level it was at last year, which was totally unacceptable and will take many families into deep debt,” Deputy Collins warned.
The Tánaiste told the deputy that the government has said there “will not be a cliff edge” in relation to the end of the excise duty reductions.
“The deputy is correct in saying that the expiry date is coming at the end of February. The government will have a decision made in advance of that. It is being examined by the government as we speak and will be examined in the coming weeks,” the Tánaiste pledged.
But Deputy Collins has claimed that in the last few days “the Minister for the Environment, Eamon Ryan, has hinted that there will be no extension to the reduced rate as the government seeks to wind down a number of cost of living supports”.
“In the real world, fishermen, farmers, motorists and those trying to heat their homes still the need supports that were introduced on the back of enormous public pressure in March of last year,” the Independent TD for West Cork said.