An independent TD has slammed the government for allowing increases in excise duty for fuel to go ahead this week.
Wexford TD Verona Murphy said that the increases were “absolutely unnecessary” due to “strong” government finances at the moment.
As part of Budget 2024, Minister for Finance Michael McGrath announced that temporary excise rate reductions – which had been introduced in 2022 in response to higher fuel prices caused by the war in Ukraine – would end on March 31, 2024.
From Monday of this week (April 1), increase of 4c/L on petrol, 3c/L on diesel and 1.5c/L on marked gas oil (green diesel) came into effect.
Last month, Taoiseach Leo Varadkar ruled out postponing these increases, despite calls to do so.
Commenting on the increases, Deputy Murphy said: “Unfortunately, due to government decisions, motorists and transport companies will have seen the cost of fuel rise this week.
“Decisions like this are absolutely unnecessary and show that the government is completely out of touch with the people,” she added.
Murphy claimed that, at a time when government finances are “very strong”, reimposing higher taxes on fuel “serves only one purpose and that is to punish motorists for going about their daily business”.
“Rising fuel prices not only result in higher bills for the motorist and transport companies, but will also result in every item in the shops being more expensive. It also means that travelling to work is more costly.
“The increase in excise duty may actually have a negative impact on government income as people in the border counties will be incentivised to head to Northern Ireland to purchase fuel,” Murphy suggested.
“This measure increases the hardship on Irish people and will help the UK economy,” the Wexford TD claimed.
She added: “The government will rise fuel costs even further by increasing carbon tax later this year. As long as this government in power, with the Green Party pulling the strings, the attack on the motorist will continue relentlessly.”
Similar concerns were raised by Sinn Féin TD Claire Kerrane before the changes came into effect, who said that restoring the excise rates on fuel would see family farmers facing “additional price hikes” when they are already experiencing high input costs.
Kerrane had said: “Many farmers are already facing soaring input costs and can little afford additional price hikes when it comes to green diesel.”