Petrol and diesel prices will increase from Thursday as the Government’s excise cuts are reversed for the first time.
As fuel prices reached record levels in March 2022, the Government announced that it would cut excise duty on petrol and diesel in a bid to bring prices down. This was later extended in September’s budget.
When it announced its cost of living supports in February, the coalition said that it would phase out the excise duty cuts gradually. The restorations will take place on June 1, September 1 and October 31.
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From Thursday, 5c will be added to the cost of petrol, while 6c will be added to the cost of a litre of diesel.
Speaking to the Irish Mirror, Paddy Comyn, Head of Communications with the AA, explained that as fuel prices are much lower than they have been, the increase may go unnoticed by some.
However, he said that any increases during a cost of living crisis are unwelcome.
He explained: “The increase is going in three stages. It will be 5c per litre of petrol and 6c per litre of diesel from June 1. In percentage terms, it is a 3.8% increase for petrol and a 3.4% increase for diesel.
“At the moment, the average prices are €1.55 for petrol and €1.45 for diesel, roughly, They are at the lowest they have been since September 2021. This will start to bring them back up again.
“I don’t think people are really paying that much attention to it because prices aren’t that high currently. It might be a little bit under the radar.
“But, overall, by October 31 it is going to have increased by 13.4% for petrol and 10.9% for diesel. It is quite an increase, it is just that it is broken up into segments.
“It is unwelcome, but because the prices are ‘reasonably’ low, people maybe aren’t as concerned as they could be if they were up closer to €2.
“It is a shame that this is being brought back when public transport isn’t quite where it should be.”
Mr Comyn said that while it was thought that prices would go up overnight, fuel suppliers have since indicated that this will not be the case in a bid to avoid queues at petrol stations.
Speaking in the Dáil on Tuesday, Taoiseach Leo Varadkar defended the restorations when quizzed by Aontú leader Peadar Tóibín.
“We reduced excise on petrol and diesel by 15c to 20c at a time when it was 500c per litre at the pumps,” Mr Varadkar said.
“It has come down considerably now. It is approximately €1.40 or €1.50. [Mr Tóinín] pointed out that we have taken in a lot of revenue from VAT on petrol, diesel, gas and electricity. This is true but it has also been given back.”
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