Dáil to hold emergency sitting over delay to planned petrol and diesel tax increases

Cabinet has agreed to postpone planned September and October excise increases, with the Dáil set to debate the move

The temporary reductions currently amount to 27c per litre of petrol and 32c per litre of diesel. Picture: Larry Cummins

The Dáil will sit in emergency session on Friday seeking to postpone to November planned increases in fuel excise duty.

TDs will gather in Leinster House from midday, with an hour-long debate on the Government’s proposals to delay planned excise increases.

Cabinet signed off on the plans on Thursday, ministers also agreed to extend the reduced Nora levy until October 31 and extend the diesel rebate scheme to late December.

As part of the Government’s plans, excise increases due to take place on September 1 and October 1 will be pushed back until November and December.

The temporary reductions currently amount to 27c per litre of petrol and 32c per litre of diesel.

The supports will be reduced further in January before excise rates return to their pre-reduction levels in February.

Tánaiste Simon Harris said the decision to delay the unwinding of the cuts until November was “common sense” and would give households and businesses more certainty amid energy market insecurity.

“By keeping the existing excise reductions fully in place for September and October, we are avoiding the increase that were due to take effect next week and giving families and businesses some breathing space over the coming months,” Mr Harris said.

However, Mr Harris said the delay would be a “temporary measure” and the unwinding from November would be done gradually.

“This strikes the right balance between recognising the pressures people continue to face and managing the public finances carefully.”

He said that developments in global energy markets would be kept under review and the Government remains “ready to respond as circumstances evolve”.

Delaying the increases will cost the exchequer an estimated €100m for each month.

Mr Harris has previously said this will be paid for by running a smaller budget surplus this year.

If the planned September 1 increases had proceeded, excise duty would have added 9c to the cost of a litre of petrol and 10c to a litre of diesel.

'Short-term certainty' welcomed

Fuels for Ireland chief executive Kevin McPartlan welcomed the decision to delay the increases, saying it provides “short-term certainty for motorists and businesses”.

Mr McPartlan said future increases must be based on the current evidence surrounding fuel prices and market conditions. He said prices are impacted by factors which are “almost impossible” to predict months in advance.

He said there should be an independent group established to consider Ireland’s system of taxing fuel, made up of Government, industry, consumer, economic, and environmental expertise.

It comes as Sinn Féin finance spokesperson Pearse Doherty indicated the party would not vote in favour of the delay and that excise increases should not proceed in November either.

“It is not good enough to postpone these increases until November. There must be a realisation that there can be no further increases in excise duty on petrol and diesel while prices remain high, whether it’s now, November or next year,” Mr Doherty said.

He said there is “no way” Sinn Féin would back an increase in excise duty while prices remain high and called on the Government to bring forward a cost-of-living package.

Both the Social Democrats and Labour Party are expected to vote with the Government to postpone the increases.