Government shelves planned 10c diesel and 9c petrol excise increases

Plans to add 10c a litre to diesel and 9c a litre to petrol from September 1 have now been shelved, with a Government spokesperson confirming the move.

“In June the Government announced an extension of the temporary reductions to fuel excise and the National Oil Reserves Agency Levy (NORA) and to avoid any cliff edge removal of supports, it set out a pathway to gradually restore rates to pre-reduction levels, starting from September 1,” a Government spokesperson said.

“However, it is clear that in the intervening period there has been a change in the global situation and as a consequence the cost of petrol and diesel for consumers.

“The Taoiseach, Tánaiste and Minister of State Seán Canney have kept in close contact in recent days and weeks and this morning agreed that the planned increases on September 1 and October 1 will not now go ahead.” 

Dáil to be recalled to delay fuel hikes 

It comes a day after enterprise minister Peter Burke said a Dáil recall could not be ruled out to stop the hikes, and hours after Sinn Féin leader Mary Lou McDonald wrote to the Government calling for the increase to be scrapped.

The Government spokesperson said the most significant economic intervention would be de-escalation in the Middle East, but that the Coalition would be “agile and rule nothing out”.

“Work is also ongoing in relation to the Budget on October 6,” they added.

“The Government has been clear there will be decisive interventions in the Budget that will be framed around assisting people with the cost of living including to reward work, reduce costs, and protect the economy.”

The decision to delay the increase has been welcomed by Fuels for Ireland, who say the decision averts an immediate risk of pushing the price of diesel over €2.

Kevin McPartlan, chief executive of the group, said the previous timetable for restoring excise rates had been “overtaken by events” and going ahead on September 1 would be “exceptionally reckless”.

“We warned publicly that Government was sleepwalking into a major problem. As prices continued to rise, we were the first to call for the Dáil to be recalled so the legislation could be changed,” Mr McPartlan said.

“We also provided Government with detailed evidence of the growing risk of renewed protests and repeatedly highlighted the significance of diesel reaching €2 per litre.” 

Backbench TDs have also welcomed the change, after some pressed the Government to u-turn on its previous plans.

Fine Gael TD Michael Murphy, who had advocated for stalling the excise restoration, said the decision by Government was welcome.

“Fuel prices have already been under significant upward pressure as a result of continuing international volatility. Motorists, families, hauliers and businesses are feeling that pressure, and the last thing they needed was an additional increase imposed domestically at the pumps,” Mr Murphy said.