Final scheduled increase on petrol prices might not go ahead, Varadkar hints

Fiona Frawley

The final price increase is due to come into effect next month.

Taoiseach Leo Varadkar has strongly indicated that the final increase of excise duty on fuel will not go ahead as scheduled, The Examiner has reported.

The Government originally cut excise duty on petrol and diesel when prices reached €2 per litre at the pumps.

Taoiseach Leo Varadkar confirmed in February of this year that a phased restoration of excise rates would take place in three stages, starting on 1st June.

The rates increased by a further 7 cent for petrol, 5 cent for diesel, 1 cent for marked gas on 1st September, and were due to be fully restored on 31st October with a final increase of 8 cent for petrol, 6 cent for diesel, and 3 cent for market gas oil.

The three-stage plan was developed to avoid any potential fuel shortage that could occur if prices jumped more significantly overnight.

However, speaking at the Fine Gael think-in in Limerick, Varadkar said he wouldn’t like to see petrol prices hit €2 again.

Via Getty.

“One of the prices that I am very aware of, and I know all of my colleagues are very aware of, is the price of petrol and diesel.

“If you remember, we cut excise around the time it hit €2 — you know, I wouldn’t like to see us put excise up to hit €2 again and then to have to bring it down again. So I think what we’ll do between now and Budget Day is really monitor prices at the pump and that will allow us on Budget Day to make that decision.”

Finance Minister Michael McGrath has also signalled that the Government may not go ahead with the final scheduled excise duty increase – in a statement shared by the Independent McGrath said he was “very conscious” of where prices are at the moment.

“At the moment, the legal position is that [the final excise hike] goes ahead at the end of October but we have flagged that we will consider that issue again in the Budget,” he said.

“I’m very conscious where prices are at this point in time, wholesale prices are moving… We will consider that in the context of the Budget, that’s the appropriate time to made the decision and it’ll well ahead of the October date.”

Header image via Getty

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