Dáil debates

Tuesday, 30 April 2024

Petrol and Diesel Excise Rate Increases: Motion (Resumed) [Private Members]

 

8:05 pm

Photo of Marian HarkinMarian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

I welcome the motion from Sinn Féin. It is straightforward and goes directly to the heart of the matter. I looked at average petrol pump prices today, which are €1.849 and €1.799 per litre for petrol and diesel, respectively. This time last year, petrol and diesel were, respectively, 19 cent and 13 cent cheaper per litre. I then looked at the figures for April 2020, before the Covid pandemic. I could not believe the figures. Petrol and diesel were, respectively, 58 cent and 63 cent less per litre. When will these prices stop soaring? The difference in price was so great I checked and double checked my figures.

I have spoken to people throughout my constituency, in particular local forecourt owners along the Border. It is clear that workers and families are not only bracing themselves for the next increase in excise, VAT and tax on fuel, they are actually dreading it.

I am particularly thinking of the man or woman with the van who travels countrywide just to keep the show on the road, whatever that show is; those who sometimes have to drive long distances just to get to work because, for whatever reason, they cannot find work locally; the small building contractors who must lug a van full to the brim with equipment from one job to the next; small wholesalers who go from shop to shop selling everything from fish to bread; and, indeed, the large hauliers who travel the length and breadth of the country selling their goods. These are just some examples of people who are struggling from day to day and trying to estimate how much the next rise will take from their disposable income and what will they have to forgo to keep the tank from emptying. These measures are not only piling on more pressure for many small businesses but they may well be the last straw.

I have quoted the following figures before but they are worth hearing because they show very clearly that increases in fuel prices hit families in rural areas harder. If we examine the average numbers of kilometres driven each year, we see that the national average is 16,300 km whereas the average in Sligo and Donegal is 17,500 km and that in Leitrim and Roscommon is 19,000 km. This indicates that the price increases hit those in rural areas harder. While I agree that improvements have been made in public transport, they are not resulting in a cutting back on mileage because most people still need their cars to go to work. This illustrates the unfairness of the increases and their disproportionate effect on rural Ireland. None of this is news to the Minister of State, I know, but I wanted to reiterate it.

On many occasions, I have raised the circumstances of those who own petrol stations along the Border. I want to draw the attention of the Minister of State to this again this evening. In advance of its briefing in the audiovisual room tomorrow, Fuels for Ireland tells us that by January 2025, we can reasonably expect that petrol and diesel will be between 20 cent and 24 cent cheaper per litre in Northern Ireland than in the Republic if the Government goes ahead with its planned policies and increases in excise, carbon tax and the amount of biofuels used in transport fuel, all else remaining equal. This is the reality for those trying to sell fuel along the Border. Even if the UK Government reintroduced excise duty, there would still be a difference of 20 cent per litre.

I understand that the revenue the Government raises is significant and will be spent elsewhere, but surely the Department has to consider the possible loss of revenue owing to consumers crossing the Border to fill their petrol tanks. It leads to the loss of much additional revenue when the consumer bypasses the local petrol station and travels across the Border. When consumers do so, they often buy most of their groceries. There is a significant difference in the prices of alcohol and children’s toys, for example. The State is going to lose revenue not only on fuel but also on so many other products that people will buy.

I have spoken to many owners of forecourts operating along the Border. They are on their knees trying to keep the prices as low as possible. Any further increase in excise is just a kick in the teeth for them. I asked the Minister of State to reverse the increase added in April. If he cannot do so, he should at the very least abandon any further increases this year. I am really asking that he ask his Department to sit down and do the math, as they say, and consider all the people who live reasonably close to the Border. We have a very long Border. In counties Donegal, Sligo, Leitrim, Cavan, Monaghan and Louth, there are well over half a million people. If you add Meath, which is pretty close to the Border, the figure is three quarters of a million. If a substantial number of these people decide it is worth their while to cross the Border because every single litre of petrol or diesel is 20 cent cheaper, it will result in a huge loss of revenue to the State. The people will almost certainly buy many of their groceries and other goods when they cross the Border. If the Minister of State does nothing else, could he do some kind of analysis of these figures? Ultimately, he wants the maximum amount in his coffers so it can be spent. The worst possible outcome would be for the State to lose revenue and for businesses along the Border to close at the same time.

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