Enda Kenny (Mayo, Fine Gael)

It is more expensive at some pumps than at others. I am referring to the average price.

As the Taoiseach is well aware, the major factor in the increase of fuel prices is the price of crude oil on the international market. In this State, however, there is another factor. This is the combination of taxation through VAT and excise duty which is levied on volume. More than 50% of the price of petrol and 40% of the price of diesel is made up of taxation. The impact of VAT means large whirlwind increases for the Government when the price of petrol and diesel rises and it takes in even more in taxation. For every 5 cent rise in the price of either, the Government takes in an additional 1 cent. Does the Taoiseach consider it right that, at a time of increasing economic challenge, the taxation system should increase the pain for consumers when oil prices are rising so dramatically? Does he have any proposals to revise the mix of excise duty and VAT so the taxation system will not be used to make a bad situation worse, when we face undoubted economic challenges?

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