Government plans 'appropriate intervention' on rising fuel prices

'This Government understands the pressures families and businesses are under,' says Simon Harris 

'We are now finalising what we believe to be an appropriate intervention, for the areas in which is there is most acute pressure and challenge.'

The Government will finalise “an appropriate intervention” to rising fuel and energy prices next week, the Tánaiste has said.

Simon Harris said measures would be signed off at the next Cabinet meeting on Tuesday.

Speaking in the Dáil, Mr Harris said: “This Government understands the pressures families and businesses are under.

“They are feeling it at the pumps — where the cost of filling a car has risen considerably in the space of a just over a fortnight — and they are seeing it in the cost of a fill of oil.” 

The finance minister said he had spoken to his officials, the Taoiseach and relevant ministers, and added: “This evening, I want to confirm to this House that we are now finalising what we believe to be an appropriate intervention, for the areas in which there is most acute pressure and challenge.

“The Government’s response will be agreed at the next Cabinet meeting.” 

Mr Harris said he strongly believed any intervention should, in the first instance, be “for a short period of time”.

The war on Iran saw the price of oil surge another 5% to more than $108 a barrel on international markets on Wednesday.

Sinn Féin TD Martin Kenny said it “seemed a little bit rich” that the Government “could do nothing, only monitor it until” his party brought the motion.

He told Mr Harris: “Now you’ve managed to find the road to Damascus and you’ve turned and you’re going to do something about it.” 

They were speaking during two hours of Dáil time dedicated to a Sinn Féin motion on energy and fuel costs.

The party called on the Government to scrap plans to increase carbon tax on home heating oil on May 1, and to reduce the cost of fuels through emergency legislation on mineral oil taxes.

The Sinn Féin Bill would introduce reductions in fuel taxes for a six-month emergency period to provide immediate relief to households, workers and farmers facing escalating energy costs.

Earlier, Sinn Fein finance spokesman Pearse Doherty told the Dáil: “We’re two weeks into this crisis, two weeks where workers and families are getting absolutely hammered by skyrocketing prices of petrol, diesel and home heating oil — diesel now well above €2, and home heating oil has almost doubled.” 

Mr Doherty criticised Government ministers for being “too busy packing their bags for Paddy’s Day” to act on fuel prices.

He said: “People can’t wait any longer for the Government who is dithering and delaying.

“They need to see action and they need to see a Government that is nowhere to be seen.

“The idea that this government is somehow monitoring the situation boils people’s blood.

“It means nothing to somebody who’s out of home heating oil today. It means nothing to that elderly person in a cold house tonight, afraid to turn on the heating.” 

Mr Harris said the Government had already extended the lower 9% Vat rate on gas and electricity until the end of the decade and increased and expanded the weekly fuel allowance.

He also argued that carbon tax is “not the cause of the current spike in energy prices” and stepping away from the planned long-term approach would “delay the transition which ultimately gives us greater control over our energy future”.

The matter was also raised during Leaders’ Questions between Sinn Féin president Mary Lou McDonald and justice minister Jim O’Callaghan.

Ms McDonald said home heating oil had reached €900 for a half fill and “people can’t wait as Fianna Fáil and Fine Gael twiddle your thumbs”.

She said: “The Government hauled in an estimated additional €38m in taxes and levies due to these price hikes in just one week.

“So it’s blindingly obvious what you need to do, cut taxes on petrol, on diesel and home heating oil.

“This would immediately bring down prices.” 

Mr O’Callaghan said: “The Government will respond to this. However, what we’re not going to do is engage in a knee-jerk response, just for the purpose of being seen to do something immediately.” He said the Taoiseach had “indicated” the Government would look at cutting excise duties, adding that any measures introduced will be “targeted at individuals who need them the most”.

Mr O’Callaghan said energy minister Darragh O’Brien had written to retail electricity and gas suppliers as well as fuel suppliers in recent days to emphasise the “importance of reducing the exposure for Irish consumers from the price shocks created by geopolitical events”.