Govt 'sleepwalking into major problem' over excise cuts

The Irish government is potentially facing a major issue by gradually unwinding fuel price subsidies, according to the Liquid Fuel Industry Association. In April, the government temporarily reduced excise taxes on diesel and petrol, but these cuts will be gradually restored between September and December. However, concerns have been growing among industry leaders.

Fuels for Ireland CEO Kevin McPartlan expressed his worry about the situation, noting that the tone of protest rhetoric has become more intense. He warned that if excise taxes exceed €2 per litre, people may once again take to the streets. McPartlan also suggested that Taoiseach Micheál Martin should recall the Dáil from its summer recess to address the issue, citing the existence of a parliamentary procedure to expedite such a recall.

While the government maintains that the tax revenue from fuel is necessary, McPartlan emphasized that the measure was temporary and that an emergency situation requires a proper response. The recent surge in social media posts and the growing intensity of the messages suggest that the issue is becoming more pressing.

The government had previously agreed to reverse fuel excise cuts in four phases between September and December. However, high fuel prices have raised doubts about the feasibility of this timeline. Recent data from AA Ireland reveals that the average diesel price has risen by 19 cents to €1.92 per litre, while petrol has increased by 9 cents to €1.84 over the past month.

The government is reportedly considering revisiting the schedule if prices remain elevated, with the first price increase potentially occurring on September 1st.