Dublin: Petrol and diesel prices in Ireland are on the rise, potentially reaching a staggering €2 per litre due to the reintroduction of excise tax. According to the latest survey by AA Ireland, this month’s fuel prices have hit their highest point of the year.
Currently, petrol is priced at €1.81 per litre and diesel at €1.78, marking significant increases of nine and thirteen cents respectively. The surge is attributed to spikes in crude oil prices and the reinstatement of excise duty.
In contrast, fuel prices remain relatively lower in Northern Ireland, where the UK government has postponed a planned excise duty hike for a year. However, efforts by petrol retailers across the border to cut prices have been short-lived.
The Irish government’s decision to gradually restore excise duty, with the first phase already implemented this month, has further contributed to the escalating costs. Excise duty on petrol and diesel is set to be fully reinstated in August, which could see petrol prices rise by 5 cents and diesel by 4 cents, in addition to VAT.
Michael Kilcoyne, Chairperson of the Consumers Association of Ireland (CAI), has urged the government to postpone the August excise duty hike to mitigate the impact on consumers. With over half of fuel prices comprising taxes and duties, any further increase is likely to amplify transport costs, he warns.