No room for further fuel excise cuts, minister warns

Social Protection Minister Heather Humphreys described recent cuts in fuel excise duty as a wartime measure. Picture: Gareth Chaney/Collins Photos

There is no room for further cuts in fuel excise duty unless Europe agrees to it, the Fine Gael parliamentary party has heard.

Some within Fine Gael want the Government to suspend carbon taxes for 2022 as fuel prices continue to rise.

However, Social Protection Minister Heather Humphreys told her colleagues there is no room for a further cut in fuel excise duty unless there is agreement at EU level.

She described it as a wartime measure and said we are at the minimum amount below which excise duty cannot go.

Any further movement on the issue requires a decision across Europe, the meeting heard.

The fuel issue dominated the meeting, according to a number of sources present.

It is understood that Cork senator Tim Lombard suggested suspending carbon taxes for 2022, saying it is “not appropriate to burden the community with such a tax” and adding it is “outrageous”.

“The fuel issue is the burning issue,” one source said. 

We’re saying there’s no fuel shortage, when we have people in rural communities burning through thousands of litres per week and the price going up and up, we’ll have lorries parked up soon because they can’t afford it.”

TDs Joe Carey and John Paul Phelan spoke of their concerns about the haulage industry and bus transport, with Mr Phelan noting how the private bus industry is not able to avail of the 20% rebate on fuel.

Both called for further moves to be made in order to protect both sectors.

Although many representatives spoke about rising fuel costs, there was very little debate due to the lack of Fine Gael leadership presence, with Leo Varadkar, Simon Coveney, and Paschal Donohoe all absent due to other commitments.

At the Fianna Fáil meeting, amid stinging criticism from a number of his own TDs of petrol stations “price gouging”, Taoiseach Micheál Martin said examples of price-fixing are “completely unacceptable”.

“Any exploitation of a barbaric war such as this is morally reprehensible,” he said. 

Such profiteering is completely unacceptable on fuel prices. It is a barbaric act of cruelty on a civil population."

Mr Martin said there are ongoing discussions on further sanctions at an EU level.

He made clear that Ireland is working with the EU Commission to see what flexibility can be achieved to ease the pressures on the cost of living, particularly in energy.

The serious disturbance to the grain market will also have a concerning impact domestically, he warned.