Govt 'Sleepwalking into Major Problem' Over Excise Cuts, Industry Body Warns

The Irish government is facing strong warnings from the liquid fuel sector that it is "sleepwalking into a major problem" regarding the planned unwinding of temporary fuel excise duty cuts. These reductions, which currently stand at 32 cents per liter for diesel and 27 cents for petrol, were implemented to mitigate high fuel costs but are scheduled for a phased removal between September and December.

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We're already seeing the people who were high profile in the protest the last time out talking about that. They say that 'if it gets to €2, we're back on the streets'. The volume of social media posts on this, and the tone of them, are both increasing.

Kevin McPartlan, CEO of Fuels for Ireland, expressed significant concern over the government's approach. He noted that rhetoric from individuals involved in protests earlier this year is intensifying, with social media posts on the topic increasing in volume and tone. McPartlan fears a return to street protests if fuel prices reach the €2 per liter mark, a sentiment echoed by those who were prominent in previous demonstrations.

McPartlan urged Taoiseach Micheál Martin to recall the Dáil (Irish Parliament) from its summer recess to address the issue. He suggested a brief meeting could be sufficient to reverse the plan, emphasizing that the excise cuts were always intended as a temporary measure. While acknowledging the government's need for tax revenue from fuel, McPartlan stressed the current emergency situation requires immediate and proper attention.

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The volume is increasing and the tone is getting stronger. I'm really, really concerned. I think we're sleepwalking into a major problem.

Signals within the government suggest the timetable for restoring excise cuts may indeed need reconsideration. Recent figures from AA Ireland show a notable increase in fuel prices over the past month: diesel has risen by 19 cents to an average of €1.92 per liter, and petrol has increased by 9 cents to €1.84 per liter. If these elevated prices persist, the coalition government might be compelled to revisit its plan. While the first price increase could still proceed on September 1st, subsequent adjustments to the schedule remain uncertain.

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There is a procedure, Standing Order 26 from memory, that allows the Taoiseach to ask the Ceann Comhairle to recall [the Dáil] for a specific purpose. It just needs to be one quick meeting where they can say, 'listen, we're going to just reverse that plan that we had in place'. This measure was always a temporary measure. It should be a temporary measure.