Oil prices - Case for cutting tax

WITH the price of diesel and petrol soaring there is a strong argument for the Government to heed consumer calls to reduce fuel tax.

Hard-pressed motorists, hauliers and fishermen are being squeezed mercilessly, while oil companies make record profits. According to AA Ireland, the 10.5% rise in diesel prices since May means it is now dearer than petrol, which has gone up by 6.6%. Inexplicably, the survey shows that since last October, the price of petrol has gone up 13% while diesel prices soared a whopping 30% in six months.

Given the negative impact of fuel price increases on the wider economy, the Consumer Association argues there is an onus on the Government to reduce its take by cutting fuel taxes in the medium to short term.