Farmers can expect to pay a cent more for green diesel from tomorrow (Thursday, June 1) as fuel prices increase.

Fuel prices in general are set to increase from tomorrow as the government moves to phase out fuel price reduction measures that were introduced to help with cost-of-living pressures.

These reduction measures were initially due to end on February 28, 2023, but were extended to Thursday, June 1, 2023, when VAT rates will be restored and prices will increase.

The increase of VAT on fuel has been met with strong opposition.

Fuel price increase response

Independent TD Michael Collins for Cork South-West told Agriland that the price increase is “daylight robbery of the highest order by the government”.

He said: “It’s an unbelievable penalty to put on rural people in particular.

“This is nothing compared to what it is going to be over the next few months.”

Independent TD for Tipperary Mattie McGrath spoke about the effect the fuel increase would have on contractors today, telling Agriland: “A lot of them are disappearing because of the costs, and farmers need the contractors.”

“For the government, it is naked greed and contempt for the farming sector and rural Ireland,” he said.

Independent TD for Kerry Danny Healy-Rae has said that he doesn’t know “why the government has to be so vindictive about this”.

Deputy Healy-Rae drew attention to the different costs between agricultural (green) diesel and motor diesel.

“We were always told there was no difference in the green diesel and the white diesel, only that there was dye put into it. Surely the dye can’t be costing that much.”

“[The government is] incentivising inflation all the time by the policy they’ve adopted… I deplore this,” he said to Agriland.

Fuel price trends

AA Ireland has completed a recent survey that shows prices have fallen.

On the scheduled increase for June 1, AA Ireland’s head of communications, Paddy Comyn said: “We have known about it for some time, but it will come as another unwelcome increase for motorists after enjoying a period of reasonably stable fuel prices.”

The increases from tomorrow will mean that, according to the AA, if fuel prices remain the same as they did in May, these increases “will see petrol costs increase by 3.8% and diesel by 3.4%”.

Rate Restoration

The the full VAT rate will be reapplied to fuel in the following manner:

  • June 1:
    • 6c for petrol;
    • 5c for diesel;
    • 1c for marked gas oil (green diesel).
  • September 1:
    • 7c for petrol;
    • 5c for diesel;
    • 1c for marked gas oil.
  • October 31:
    • 8c for petrol;
    • 6c for diesel;
    • 3.4c for green diesel.