Fuels Ireland chief calls for review of fuel taxes as Government plans excise increases

The current cuts will stay in place until November 1, at which point prices will increase by 10c a litre for diesel and 8c a litre for petrol when the NORA levy is restored. Picture: PA.

The CEO of Fuels Ireland has repeated his call for a more detailed examination of fuel taxation policies and other compliance costs imposed on fuel, rather than the current “ad hoc approach”.

His comments follow the announcement that the Tánaiste will be bringing a memo to Cabinet today, asking the Government to approve the phasing out of excise cuts from November.

The current cuts will stay in place until November 1, at which point prices will increase by 10c a litre for diesel and 8c a litre for petrol when the NORA levy is restored.

“We should sit down and have a considered look at this,” Kevin McPartlan told Newstalk.

“That's not to suggest that we have to reduce the overall bill on fuel, I don't think that that's a realistic prospect at all, but what we need to look at is the policy that we are pursuing, or the policies that we're pursuing, best served by the fuel taxation regime, and the other compliance costs that we put onto fuel.

“I am absolutely convinced that we're not doing a good job at the moment on that.” 

The restoration of the levy was due to come into effect from September 1.

The increases will now happen in four stages, before they are fully restored by February next year.

The diesel rebate scheme for hauliers will also be extended until the end of December.

Sinn Féin criticism

Sinn Féin TD Pearse Doherty, who is the party spokesperson on finance, said it was “just not acceptable” for the Government to consider putting off an increase in fuel costs until November.

“I think the public made it very clear, that they weren't going to tolerate the government's decision to start increasing petrol and diesel by 34 cents and 29 cents starting on September 1,” said Mr Doherty.

“But the fear here was that the government simply didn't understand or didn't really get it, and they were just going to kick the can down the road.

“That's exactly now what we understand is going to happen this morning at the cabinet meeting.

“The idea that they just put this off for a couple of months and then they start increasing the price of diesel by 34 cents come November 1 up to February, it's just not acceptable.”

Mr Doherty said the Government had attempted to “pull a stroke” with this “unprecedented move”.

“They tried to ensure that the increases started when the Dáil wasn't sitting, when there was no political pressure, no leader’s questions, no ministerial questions, they thought they would get away with the first increase,” said Mr Doherty.

“But Sinn Féin and indeed the public had a different view that we weren't going to let them away with it because it's ordinary workers that would have had to carry this cost.”

Mr Doherty added that there was “no way” that 34c should be put on the price of diesel, “whether it's now, whether it's next year, whether it's the year after.”

“This is actually now what the government are planning to do is tax diesel more than ever in the history of the State,” said Mr Doherty.

“It's not just about reversing the cuts that happened last April.

“It's actually putting more tax than ever existed on it.

“There has to be a serious question about the government's policy.

“Their policy is that they want to increase the tax on petrol and diesel every year between now and 2030. I think that's daft. I think it's wrong.

“I think that experiment has really failed,” he added.

“All they're doing is making people across the State more poor as a result of it, making their lives more harder.

“The government should do the right thing, just keep them at the level that they are.

“If the prices decrease internationally, then of course there's an option to get some excise back on, not all of the excise, but some of the excise back on.”