Government could recall Dáil to delay September fuel excise hikes, minister says

Peter Burke says escalating Middle East tensions have prompted the Government to review the timing of planned fuel tax increases

Peter Burke has said that 'nothing can be ruled out' regarding the timeline for the excise increases. Picture: Brian Lawless/PA

The Government could opt to recall the Dáil to delay fuel excise hikes scheduled for September 1, the enterprise minister has signalled.

Peter Burke has said that “nothing can be ruled out” regarding the timeline for the excise increases, saying that the situation in the Middle East has “deteriorated significantly” in recent weeks.

“Obviously if you look at the backdrop of when the legislation was put forward in relation to excise increases, at that time, it looked more positive in terms of trying to get resolution in the Middle East with the Strait of Hormuz,” Mr Burke said.

Mr Burke said there has since been a “dramatic escalation” in the US’s war with Iran.

At present, the price of petrol and diesel is due to increase by 11c and 12c respectively on September 1. 

Further unwinding of the excise cuts is scheduled to take place later in the year.

The cuts were introduced in April following major protests across the country, which saw ports, an oil refinery and roads blockaded, leading to fuel shortages.

Mr Burke particularly highlighted the price of marked gas oil, or green diesel, which had previously retailed at 94c a litre in July. Mr Burke said this has since increased to €1.24 per litre.

Government ‘actively reviewing’ excise timeline

Mr Burke said the Government was “actively reviewing” the timeline for excise rises, saying Taoiseach Micheál Martin and Tánaiste Simon Harris were working closely together on the matter.

Asked directly if the Government is considering a recall of the Dáil to stall the hikes, Mr Burke said: “Government leaders are keeping all of those decisions under review. Obviously a lot has changed over the last number of weeks.”

Mr Burke said there had been a “dramatic escalation” in the US’s war with Iran over the last week, particularly highlighting the situation in the Strait of Hormuz.

He added that the deadline for a possible deal between the US and Iran had passed, leaving things in “uncharted territory”.

Mr Burke said the Government had previously intervened “at every point” to protect the agri-economy, consumers and the “over 2 million workers” who use fuel to get to work.

Asked about the potential impact of long-term excise cuts on the upcoming budget, Mr Burke said that “sustainability was key”.

He said the excise cuts had reduced inflation in the Irish economy.

Fuel prices and impact on economy

The enterprise minister said Ireland is particularly exposed to international shocks, with fuel price increases hitting every part of the economy.

“Energy underwrites everything we do in the economy almost, from food production to logistics. That’s what the Government is really focused on, trying to reduce grocery prices and food prices through a number of measures.

“Reducing the cost to get products on the shelves for consumers and that has been key in price reductions. But we have a lot of work to do.”

Mr Burke added that it was important that October’s budget focused heavily on income tax.