Fuel excise cuts cannot go on indefinitely, Enterprise Minister says
By Cillian Sherlock, Press Association
Cabinet will have to consider when to unwind fuel excise cuts, the Enterprise Minister has said, stating a recent postponement cannot go on “indefinitely”.
However, Peter Burke said any action that would put petrol and diesel prices well beyond two euro per litre would “cause very significant distress on families”.
The Dáil is to be recalled early from the summer recess for one day on Friday to vote through a financial resolution to shelve an increase in fuel excise rates.
An excise cut of 32c on a litre of diesel and 27c for petrol had been due to be phased out from September 1st.
Petrol is currently beinf sold at around €1.83 per litre while diesel is at €1.93 – with the first stage of the phase out expected to have added a respective 9c and 10c before Government moved to postpone the measure.
The cuts were introduced in April amid major protests that severely restricted fuel distribution around the country.
The initial timing for the phasing-out of the excise cut – which came as part of €750 million in industry supports and cost-of-living measures – was devised when the outlook over the Middle East conflict looked more positive.
The Coalition had come under pressure from opposition figures to delay the measures and Government leadership announced last Friday that the Dáil would be recalled scrap increases at the start of September and October – with the Budget due on October 6th.
You have to do what's right for the country.
Burke said Cabinet is awaiting a memorandum from the Finance Minister and his Fine Gael party leader Tánaiste Simon Harris which will outline “scenarios that will have to be brought forward”.
Burke said the excise cut “can’t go on indefinitely” and added: “We have to ensure the public finances are in a stable position.”
He said Government will then have to consider “at what point we will bring forward increases”, but cautioned that it was “difficult just to assess that” due to global uncertainty.
He added: “Also, we’ll have to look at the cost and the impact of, you know, carrying forward for another two months.”
Speaking on RTÉ’s This Week, Burke said he had no “exact costing” for the delay amid reports it could be 100 million euro per month.
However, he said the reduction in excise has reduced inflation by about 0.6 per cent.
Asked if the Coalition would consider more targeted measures in the Budget, the minister said Government “will have to consider that” but said all families “feel the cost of increased fuel at the pumps”.
Soaring fuel prices in April as a result of the war in the Gulf spurred protesters, largely led by hauliers, farmers and agricultural workers, to engage in large-scale mobilisations in search of Government intervention for their operating costs.
The protests, including blockades of Ireland’s only oil refinery and other key depots, strangled fuel distribution across the country and prompted an escalated policing response that resulted in several arrests amid clashes between public order units and participants.
Asked if there was fear of further protests if the interventions are eased out, Burke said: “No, we’re well used to taking intense pressure from many different quarters.
“The critical thing is you have to do what’s right for the country, and you have to do what’s right for families who are really grappling with the cost of living right now.
“And to take an action by a Government to push up petrol and diesel prices well beyond two euro would be very significant and would cause very significant distress on families.”
