Government May Gradually Reintroduce Fuel Excise Duty, Not Sudden Hike July 31
Tánaiste Simon Harris suggested a gradual reintroduction of fuel excise duty instead of a sudden hike when temporary cuts expire on July 31. This aims to prevent an «immediate cliff-edge» for consumers. The move also prompts a review of Ireland's fuel tax structure and revenue diversification.
Tánaiste and Minister for Finance Simon Harris indicated the Government may gradually reintroduce higher excise duty on petrol and diesel, rather than a sudden hike, when current temporary cuts expire on July 31. He stated he does not want an «immediate cliff-edge» when the cuts of 32 cent per litre for diesel and 27 cent for petrol lapse.
Harris noted falling fuel prices due to stabilization in the Middle East and resumed traffic through the Strait of Hormuz. He believes people cannot absorb the full 32 cent increase immediately. Legislation is required in the coming weeks if the July 31 expiry date is to be changed, necessitating a swift Government decision.
This situation also prompts consideration of the future structure of government revenues from fuel taxes, given Ireland's high fuel costs compared to Europe and the impending shift to non-fossil fuel engines. Reforming these areas of State income and expenditure is crucial, especially as public finances are over-dependent on the multinational sector.