Cowen rules out reducing VAT on fuel

TAOISEACH Brian Cowen has ruled out a reduction on the VAT on fuel, meaning motorists will continue to suffer high prices at the petrol and diesel pumps.

In the Dáil yesterday, Fine Gael leader Enda Kenny urged Mr Cowen to consider such a move, saying consumers, businesses, farmers and fishermen were being “screwed to the ground” by fuel price increases. “The cost for a fill of home heating oil is now €1,000. These costs come on top of other price increases, relatively stagnant incomes, the rising cost of doing business, the loss of competitiveness and increasing mortgage repayments,” said Mr Kenny.

Five years ago, the average price of a litre of diesel was 78.2 cent, and this had risen to €1.32 by last month. The average price of a litre of petrol had risen from 86 cent in 2003 to €1.25 now, he said.