Fuels For Ireland, the representative body for the fuel industry in Ireland, has cautioned that the excise cut may not be enough against the backdrop of continued wholesale price rises.
The Dáil voted on Wednesday night to cut excise on petrol and diesel amid soaring prices as a consequence of the Ukraine/Russia war.
However, industry representatives say they feel the response doesn’t go far enough, as their fuel stocks were purchased at the higher rate.
Speaking on the matter yesterday, Kevin McPartlan, CEO of Fuels For Ireland, said: “Fuels For Ireland welcomes today’s announcement from Government and their attempts at resolving this situation. We are all concerned at the scale of price increases, and the impact that this is happening on individuals and businesses across the country. However, we are concerned that these reductions won’t do enough. For instance, diesel rose by 22c on wholesale markets in the last 24 hours alone, yet today’s excise cut ultimately won’t even counter that”.
“A second challenge is that many of our members will be expected to immediately pass on these lower prices immediately when the excise reduction is announced this evening, but for stocks already purchased, the excise has already been paid at the higher rate. There will need to be some form of rebate mechanism here in order for the reductions to be passed on immediately”.
“The final challenge is around VAT, where the Government are saying that they are going to deliberate along with their European partners and decide on this matter next week. We need to impress on them the urgency of this situation and the need to bring about price certainty as soon as possible”.
“While these reductions are welcomed, and we appreciate the Government being so responsive in this uncertain time, we believe that there is more that can be done to help stabilise prices and bring certainty”.
