Irish road hauliers are calling for more government supports, as well as the suspension of the carbon tax, describing surging fuel prices as a national emergency.
The Irish Road Haulage Association (IRHA) is to meet with the Minister for Transport Darragh O’Brien on Friday morning, 3rd April, to discuss the ongoing impact of escalating fuel prices on the haulage sector.
Last month, the Minister said he was committed to keeping supports under review amid the ongoing situation in the Middle East.
The organisation has been warning that their industry faces collapse due to spiralling fuel costs on top of increased tolls, new charges at Dublin port and a range of other government-imposed taxes and charges.
The Government currently takes over 65 per cent of the price of a litre of petrol and over 60 per cent of the price of a litre of diesel.
Ireland is also one of just a handful of member states in the EU that charges a carbon tax of 18.4 cents per litre – set to rise to 26.8 cents by 2030.
Hauliers say that a wide-ranging review is needed of how fuel is taxed in Ireland to understand why so many of the measures tackling climate are directed at one industry, transport.
Those in the hauler industry have accused the government of profiteering from tightly-squeezed motorists, hauliers and farmers who are struggling due to constant increases in fuel prices.
The Irish Road Haulage Association (IRHA) says it also wants a temporary suspension of the 19.6 cent per litre carbon tax levy on diesel due to rising fuel prices, which are rising above €2/L. It says that the tax, among other levies, is making the industry unsustainable, with total taxes now accounting for over 60% of fuel costs.
A temporary suspension of the carbon tax is legally possible. The IRHA also wants a removal of the M50 toll for all motorists and hauliers.
Hauliers have said that temporary measures taken to ease fuel prices have already been “swallowed up” by subsequent hikes in the price of oil. They have urged the Government to consider more extreme measures, such as a potential cap on fuel prices to tackle rising costs.
Earlier this week, Mr Hyland of the IRHA said that hauliers had negotiated with the Government, and while they hoped for more in terms of excise cuts, the door “remains open” for negotiations.
More than 50 per cent of the cost of petrol and diesel in Ireland comes from excise costs and levies including VAT and the carbon tax.
IRHA President Ger Hyland commented on Friday: “While existing supports were welcome, the continued increases in fuel prices have effectively eroded the benefit of those initial supports. The situation facing hauliers has intensified in recent days, with operators now under renewed financial pressure as diesel prices show no signs of stabilisation. This is a national emergency.”
“The margin for operators, many of whom are small family-run businesses, is being squeezed to unsustainable levels. Most of our members are operating at a loss and cannot continue to do so indefinitely. This will lead to job losses, higher prices and a fast emerging crisis in Ireland’s transport sector. ” he said.
The IRHA is calling for further, immediate intervention from Government, to support hauliers given current market conditions. It also wants priority status in the event that the Government introduces fuel rationing.
“Without immediate action, the viability of many haulage businesses are at serious risk, with knock-on consequences for the wider economy and supply chain,” Mr. Hyland added.
The IRHA said it remains committed to engaging constructively with Government but warned that failure to address the current cost crisis adequately will leave the sector with limited options.
Mr. Hyland added: “Everything you buy — groceries, furniture, clothes and building materials — arrives by truck. As our fuel costs rise significantly, the price of those goods will increase.”
“You are going to see higher prices because of this crisis and the Government needs to act now to soften the worst impacts of those price increases.”
“We negotiated with Government, and while we were hoping for more (in terms of excise cuts) and didn’t get it, the door remains open, and we would hope to get back in to speak again this week,” he told the Irish Examiner earlier this week.
Mr Hyland also said it is “time now” to suspend carbon tax, and “do whatever needs to be done to support our industry, especially as we are what keep this country rolling.”
“Whether that means the Government puts a cap on the price of fuel until this crisis is over, maybe that’s a consideration. We need to be thinking outside the box here,” he said.