Donegal fuel prices could become 15 cent a litre more expensive than those across the border, according to a body representing retailers.
Fuels for Ireland (FFI) is urgently calling for the Minister for Finance and the government to postpone the planned increase in excise duty on fuels which is scheduled for April 1st.
The UK Chancellor of the Exchequer announced last week that he has postponed increases on fuel excise duties for 12 months. In the Republic, there are two excise duty increases scheduled for April and August. The resultant differences in prices at the fuel pumps between Ireland and the UK will put fuel retailers operating in Donegal at such a disadvantage that many will face the prospect of going out of business, FFI has claimed.
“There could be a 15 cent a litre difference in the price of petrol between retailers on both sides of the Border by August,” Kevin McPartlan, CEO of FFI said.
“Undoubtedly, this would mean that retailers in Donegal would be under such huge pressure that many could go out of business.”
During the cost-of-living crisis, Mr McPartlan said the Irish Government made the correct decision to reduce excise duties on fuel. The UK Chancellor of the Exchequer made a similar decision. Ireland intends to increase excise duties to their previous levels with two increases on April 1st and August 1st. However, just last week in his Spring Budget, the UK Chancellor of the Exchequer, Jeremy Hunt, announced that the UK will postpone any increases for the next 12 months.
“This will lead to a huge difference in prices at the pump with retailers south of the border at an extreme disadvantage,” he added.
“Forecourt operators in border constituencies are expected to face a substantial reduction in demand. With many retailers situated near the Border, the price gap between Northern Ireland and Ireland will drive consumers across the Border, posing a grave threat to the viability of local forecourts.”
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