The increase in excise duty on petrol, diesel and green diesel which came into effect last month has “added to the financial challenges” facing rural communities, according to independent TD for Kerry, Michael Healy-Rae.
The government had introduced a temporary reduction in the excise duties charged on petrol, diesel and green diesel last March because of the impact of the war in Ukraine on global prices.
But in June the rates increased by 6c/L for petrol, 5c/L for diesel, and 1c/L for green diesel.
By October 31, the excise duties rates are expected to be fully restored with an increase of 8c/L for petrol, 6c/L for diesel and 3.4c/L for green diesel.
However, Deputy Healy-Rae has today (Monday, September 25) called on the Minister for Finance, Michael McGrath, to “immediately review the hike in the excise duty on fuel”.
“I think the minister has to look at the situation again, as at the moment the farming industry in Ireland is going through challenges and I believe that this is an unnecessary hike which could be suspended if the minister had the will to do it,” he said.
According to Deputy Healy Rae there has been no indication yet from the minister if he will consider such a move.
The minister of finance informed the deputy that he will “not comment, in advance of the budget, on any tax matters that might be the subject of budget decisions”.
Minister McGrath told the Dáil last week that the reductions in excise fuel duty were “estimated to have cost over €1 billion between March 2022 and July 2023 and there will continue to be an additional cost to the exchequer while reductions apply”.
Excise hike
The decision by the government to increase the excise duty has to date been met by strong opposition from farming organisations.
The Irish Farmers’ Association (IFA) farm business chair, Rose Mary McDonagh, said against the backdrop of a cost-of-living crisis and high inflation, the impact of further taxes would have a significant knock on effect on farm families.
She has also appealed to Minister Michael McGrath to reconsider the timing of any further increases in exercise duties.