Chambers rules out energy credits and excise cuts amid fuel price surge

Minister rejects immediate fuel relief measures and warns retailers against opportunistic price increases amid global tensions

Public Expenditure Minister Jack Chambers has ruled out energy credits and excise cuts, accusing some companies of being “opportunistic” and engaging in “price gouging” as the conflict in the Middle East continues.

The Fianna Fáil TD also confirmed that, despite rising costs, carbon tax increases scheduled for May 1 will proceed.

Energy prices have risen following the US-Israeli strike on Iran and the retaliatory actions that followed. On Wednesday morning, the average cost of 500L of home heating oil stood at €761.46, up from €495 on February 27, according to oil price comparison website oilprices.ie.

Hauliers have warned that petrol and diesel prices are likely to continue rising, with diesel expected to surpass €2 per litre.

Although the previous Government introduced energy credits after prices surged following the outbreak of the Ukraine war in February 2022, Mr Chambers said such supports are not under consideration.

“What we have at present is an extremely volatile, uncertain, and unpredictable pattern emerging,” he said.

“Government has said we'll continue to assess the overall position in the weeks and months ahead, but we won't be taking any immediate response because it is uncertain.

“We also have a new fiscal framework, which we have to adhere to. We’ve said that the measures that we took in last year's budget will be sustainable, permanent, and affordable.

“Making ad hoc interventions after a series of days, I don't think, fits with the widened term fiscal and structural plan, which we've agreed within Government.

“Clearly, if things escalate to an extraordinary degree, we'll assess that at a given point in time. But we don't know what the medium-term position will be on this, around the economic consequences, or the inflationary consequences, and how that might impact on our growth trajectory.

“I'm saying it's highly unlikely [that energy credits will be introduced].” 

Mr Chambers warned that any intervention would carry “a consequence for what Government might want to do in other areas as well”.

He added: “The current position is that there isn't any intervention on the table.

“We'll assess the wider position over the weeks and months ahead to see if there's any sustained or increasing price dynamic, but we have to be careful about what intervention we make and what impact that has on the wider fiscal position.” 

The Government previously cut excise duty on petrol and diesel in response to rising costs linked to Russia’s war on Ukraine. However, Mr Chambers said ministers are not considering similar measures.

However, Mr Chambers also stated that this is not something that is being considered.

He accused some retailers of “price gouging”, arguing that fuel currently in pumps was purchased “well before the price dynamics changed”.

He described the increases as “pure opportunism by certain retailers”, adding that they had “nothing to do with Government levies or taxes” on fuels.

Mr Chambers confirmed the carbon tax increase will proceed on May 1, with a €7.50 rise bringing the rate to €71 per tonne of CO2 emitted.

He also declined to set a fuel price threshold for Government action, insisting there are “no plans to make an intervention”.

In the Dáil, Sinn Féin leader Mary Lou McDonald told Taoiseach Micheál Martin it was “not good enough to criticise price-gouging and then to do absolutely nothing about it”.

Mr Martin said “no one should take advantage” of global uncertainty to increase “prices of energy, oil, or petrol”.

He also said the Government undertook “targeted action” in the budget.