Varadkar: Government could intervene if 'dramatic escalation' in fuel prices continues

Wed, 22 Jun, 2022 - 09:19

Vivienne Clarke

The Government cannot "definitively rule out" any further action on inflation, the Tánaiste has said.

However, Leo Varadkar clarified that there are no immediate plans for such moves.

Speaking on RTÉ radio, he noted that if there is a "dramatic escalation" in fuel prices, the Government would be forced to intervene.

In March, when fuel prices were soaring, the Government cut excise duty on petrol and diesel by 20c and 15c per litre, respectively.

While the move initially slowed fuel price inflation, prices have returned to strong growth, surpassing €2 in many parts of the country. It will cost at least €500 more to run a car this year than previously.

In March, the Government cut excise duty on petrol and diesel by 20c and 15c per litre, respectively.

Planning was ongoing towards the Budget in the autumn which would include immediate measures to assist the public and ensure the country did not slip back into recession, Mr Varadkar added.

Rationing

In response to comments by European Commissioner Mairead McGuinness who warned about the possibility of fuel rationing in the future, Mr Varadkar said that the Government had contingency plans in place. The problem at present was the price of fuel, not the supply. There was a 90-day reserve which would provide a cushion.

Mr Varadkar also addressed the cost of childcare in Ireland, which he said, at present, was “so out of line” and needed to be addressed by way of better pay and conditions for staff in the sector, significantly lower fees for parents and higher standards. The National Childcare Subsidy would do that and would benefit more people rather than tax breaks which tended to benefit higher-paid people more.

Any benefits should be universal, those who need it the most should benefit the most, he said.

Ireland now most expensive in EU for everyday costs

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