Government Leaders to Decide on Phased Removal of Fuel Excise Cuts by July End
Government leaders will meet to decide on the phased removal of fuel excise cuts, introduced in April after protests. The reductions, 32 cents for diesel and 27 cents for petrol, expire end of July. The Coalition is expected to approve a three-stage phase-out, but faces political opposition.
Government party leaders are scheduled to convene to determine the future of excise duty reductions, which were initially implemented following fuel protests in April. Taoiseach Micheál Martin, Tánaiste Simon Harris, and Seán Canney, leader of the Independents in Government, will discuss proposals for the gradual discontinuation of these cuts on diesel and petrol.
The current reductions, amounting to 32 cents per litre on diesel and 27 cents per litre on petrol, are set to expire at the end of July. These measures were introduced in April in response to nationwide demonstrations by farmers, hauliers, and other agricultural sector representatives protesting increased fuel prices, which they attributed to the US and Israel attacking Iran.
Since the implementation of these cuts, global oil prices have reverted to levels observed prior to the conflict in Iran. Consequently, the Coalition leaders are expected to approve a phased withdrawal of these supports, likely occurring in three stages between August 1 and Budget Day in October.
However, this decision is anticipated to encounter political resistance. The Dáil is slated to debate a motion advocating for the extension of these cuts. Sinn Féin has argued that reversing the cuts is impractical while Leinster House is on summer recess, and Aontú plans to introduce a motion in the Dáil on Wednesday, urging the Government to reconsider its plans amidst the ongoing cost-of-living crisis.