Michael McGrath examining if excise cuts on petrol and diesel will be restored
Michael McGrath said while the current position will see excise duty fully restored on October 31, the issue is up for consideration in the budget.
Finance Minister Michael McGrath is examining whether or not the Government will restore excise duty cuts in the upcoming budget.
Speaking at the Fianna Fáil think-in in Co Tipperary, Mr McGrath said while the current position will see excise duty fully restored on October 31, the issue is up for consideration in the budget.
“The legal position is that it goes ahead at the end of October but we have flagged that we will consider that issue again in the budget,” Mr McGrath said.
"I’m very conscious of where prices are at at this point in time. Wholesale prices are moving.
“If you take the cost of a barrel of oil in mid-July, it was around 70 dollars. Today its over 90 dollars and that’s because of supply decision that have been made by those who control these things.”
Cuts to excise duty were initially brought forward in early 2022 as part of efforts to ease the ongoing cost-of-living crisis. In particular, the cuts totalled 21c per litre being taken off the cost of petrol, as well as a 16c cut to diesel.
The phased restoration of the tax was initially started in early June, continued in September and the final hike was planned for October 31.
“We’re not blind to that reality, we will consider that in the context of the budget. That’s the appropriate time to make a decision.”
Mr McGrath added a decision on the scale of the one-off package within the budget will not be made until October. He said the timing of any one-off payments would not be influenced by the local and European elections, which are due to take place next June.
“I think the first thing to decide is what is the overall scale of what is an appropriate package of one-off measures,” Mr McGrath said.
In particular, Mr McGrath said both social welfare one-off payments and the three electricity credits were warmly welcomed by the public.
Meanwhile, Tánaiste Micheál Martin said earlier on Tuesday a cut to the Universal Social Charge (USC) is still "in the mix" as part of a suite of measures in the upcoming budget aimed at helping people with cost of living pressures.
Mr Martin said the cost of living crisis was "the key issue" for the Government going into the next budget.
"We have a tax package framework, in terms of the summer economic statement, of about €1.1bn. We do want to reduce pressure on families," he said.
"The Universal Social Charge is in that mix, it will be considered by the minister and the Government, along with income tax and other measures to try and reduce costs on people."
The next budget will be the first delivered by a Fianna Fáil finance minister since Brian Lenihan in 2010 — the same budget in which the USC was introduced as a temporary measure.
Mr Martin also said Fianna Fáil would be going into the next general election in its own right as a political party, with its own manifesto, ideas and priorities.
He pointed out that Ireland’s multi-seat proportional representation system provides a wide range of options in terms of the formation of the next government.
“I think there's been a degree of commentary suggesting it's a slam dunk in one direction. I'd say that's not the case," he said.
"And there's a whole variety of governments that can be formed.”
Mr Martin said Sinn Féin had categorically ruled out going into coalition with Fianna Fáil on two previous occasions — in 2016 and 2020 and yet it was always Fianna Fáil being asked about going into coalition with Sinn Féin.
“That never gets said. We are going to go on our own policies," he told .
"I believe we will go into government with like-minded parties that have similar policies, particularly in the enterprise area in a pro-European way and also in terms of a party that is committed to the reality of climate change and will take the hard decisions."
Mr Martin said on enterprise, Europe and climate change, Sinn Féin's policies were "incompatible" with Fianna Fáil.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
