Substantial increases to the cost of fuel are coming down the line as the end of the cap on excise duty approaches with increases of 20c per litre on petrol and 15c per litre on diesel incoming.
In the aftermath of the Government’s decision to end the evictions ban many column inches and much air time has been dedicated to documenting the fallout – both real and potential – of the move.
While the ending of the eviction ban is indeed a noteworthy cause for concern that will affect a large number of people the question of fuel costs is doubtlessly a wider reaching issue.
Many of us are struggling to make ends meet as we continue to absorb the ever increasing cost of living while the cost of everyday items continues to climb.
Fuel is no exception and with the government’s excise duty cap coming to an end the price per litre of petrol will increase by 20c while the price of diesel will rise 15c per litre.
Compared to levels from 2010 petrol has increased in price by 33% and diesel by a whopping 50%.
During a Dail debate last month Minister for Finance Michael McGrath said that from the 1st of June prices on mineral fuels “will increase on a VAT-inclusive basis by 6 cent, 5 cent and 1 cent per litre for each of petrol, diesel and MGO, respectively.”
This comes as the extension of the excise duty reduction – which originally expired at the end of February but was extended to the end of May – comes to an end.
Petrol and Diesel are subject to excise duty which include the NORA levy (National Oil Reserves Agency levy), carbon taxes, and VAT of 23%.
According to the AA Nora tax is “a tax that is added to all oil fuels to ensure that Ireland meets its EU obligations of keeping a 90 day stock of oil in the event of a shortage.” while carbon tax which it states “really has nothing to do with carbon” works in much the same way as excise duty and is attached to the per litre price of fuel.
On the first of September McGrath said that the rates will increase by a further 7 cent, 5 cent and 1 cent per litre for each of petrol, diesel and MGO, respectively.
“Finally, the rates will be fully restored by the balance of 8 cent for petrol, 6 cent for diesel and 3.4 cent for MGO on 31 October 2023. The cost of this measure is estimated at €383 million,” he said
The minister said that “the spikes in energy prices were driven by market factors, and that the tax system cannot prevent this.”
Independent TD Carol Nolan said that the numbers “reflect the enormous tax burden that is coming down the tracks for farmers, drivers, hauliers, transport operators, school bus providers and the list goes on,.”
She added, “It is unconscionable that this is set to take place at a time when other energy costs are fracturing the capacity of businesses and households to stay afloat.”
It was reported that average annual fuel cost spends see petrol engine drivers spends €2,003 on fuel, while the average diesel engine driver spends €1,680, with drivers of electrical vehicles spending €1,306 on charging costs.
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