Fuel hikes for motorists to come into effect from today

Kenneth Fox

Motorists will be feeling the pinch this bank holiday Monday as fuel prices are on the rise once again.

The cost of petrol is set to jump by 4 cents per litre, while diesel will increase by 3 cents and marked gas by 1.5 cents.

It is the latest step by Government to restore excise rates after a temporary cut was introduced two years ago.

As the Irish Examiner reports, prices will also rise from planned hikes in carbon tax in October’s budget with an increase in the biofuels component of transport fuels set to impact costs further.

Despite calls for a further delay in fuel excise hikes — which were postponed in October until now — the Government has reaffirmed its commitment to restoring the excise duty, with the cost of delays quickly adding up.

Earlier this month, Minister for Finance, Michael McGrath said that while he recognises that households and businesses are facing challenges, “the Government must strike the appropriate balance between providing and avoiding fuelling cyclical inflationary trends”.

Replying to parliamentary questions last week, Mr McGrath said by not proceeding with the three planned increases in April, August, and October, it would cost the exchequer €183.5 million in total, comprising €55.3 million for petrol and €128.2 million for diesel.

However, recently released figures show the Government posted a tax take from fuel of just under €3.8bn last year — the highest in the past decade — despite cuts to excise duties.

Aontú leader Peadar Tóibín, who received the figures, said it was "an astronomical amount of money collected from tax on fuel" and showed that excise duty should remain cut.