A Fianna Fáil TD has said that a pause on carbon tax hikes “needs to be considered” by the Government in light of soaring energy prices caused by the Iran war.
Speaking to Gript today, Clare TD Cathal Crowe said that the government “probably will have to step in” to assist households as the conflict looks set to drag on.
“I don’t think these costs can be borne by everyone,” he said.
“I think we most likely will have to do something.”
Crowe noted that he has been “inundated” with contact from constituents regarding the sudden spike in fuel costs.
“I’m getting a lot of phone calls and emails from people,” he said.
“People are taking photographs of the local pricing at their local petrol station.”
The Deputy suggested that while initial expectations were for a short conflict, the reality of a “more attritional war” necessitates action.
“If it was a two or three-day war I don’t think government could react in a knee-jerk fashion of a war that was over in a matter of hours,” he said.
“But if it’s going to be more long-term, which it looks like it will, with markets and fluctuated prices at unsustainable levels, I think the government may have to intervene.”
When asked specifically if a pause on scheduled carbon tax increases should be looked at, Crowe said such measures “need to be considered, absolutely.”
“I don’t know if it will involve a postponement of the carbon tax or if it will involve the adjustment of excise,” he said.
“I think it has to be the one that gives the greatest pressure relief to people.”
He added that the government has previously proven it can be “agile” in response to unfolding crises such as the Covid-19 pandemic, and that it should show similar speed in this instance.
“We’ve a chance to prove ourselves here that we can also take swift and agile action to address something,” he said.
“I think we need to hear from ministers what that might look like but I think it needs to be certainly considered now when we return next week.”
However, European Affairs Minister Thomas Byrne has suggested he is opposed to such a move.
Speaking on RTÉ’s The Week In Politics programme over the weekend, the Fianna Fáil Minister said that changing the carbon tax was “the last thing he would do” to help people with energy prices.
Oil prices surged past $100 a barrel for the first time since 2022 this week.
The rise comes as the fallout from the US-Israel war with Iran continues to rattle global markets.