What to expect as 10-cent fuel excise cuts take effect

Forecourts operators warn motorists that prices will not drop immediately

The cuts in excise will remain in place until July 31.

Further cuts in fuel excise come into effect this morning following major, nationwide protests that brought the country to a halt.

The Government's reductions in excise amount to a 10c cut to the price of a litre of diesel and petrol and follow on from previous cuts in excise announced in March.

However, forecourt operators said the cuts will not be passed on to motorists immediately.

The key measures coming into effect today are.

• A further cut in excise on diesel by a further 10 cents. It brings the total reduction in diesel to 32 cents.
• A cut in excise on petrol by 10 cents, bringing the total reduction on petrol to 27 cents.
• A reduction in the excise on marked gas oil (green diesel) by a further 2.4 cents, bringing the total reduction on green diesel to 7.4 cents.
• The government previously announced a reduction in the NORA levy.
• The Government will defer the planned increase in carbon tax, which is due to come into effect on May 1, until the Budget. This will impact green diesel and non-propellant fuels such as kerosene, heating oil, natural gas and solid fuels.

The excise cuts will continue until July 31. The reduction in the NORA levy will also end on July 31.

Despite the cuts, the operators of the country's forecourts and filling stations warned motorists not to expect prices to come down immediately.

Kevin McPartlan, CEO of the representative body Fuels for Ireland, said: "We understand that motorists will expect to see the excise reduction reflected at the pump as quickly as possible. It is important to say that this may not happen at every forecourt immediately, and that should not be misunderstood as a failure to pass on the tax cut.

"Excise is applied when fuel leaves a terminal or refinery, not when it is sold at the pump. In recent days, the industry has been operating under disrupted conditions, and the priority has been to keep fuel moving and forecourts supplied where possible. As a result, some of the fuel arriving at sites in the immediate aftermath of the change will still have left facilities at the old excise rate," he said.

McPartlan said some sites will pass on the cut immediately, while other filling stations may take 48 to 72 hours, but said motorists should see the benefit at all filling stations by the weekend.