Financial Resolution No. 7 provides for an increase in the mineral oil tax on petrol, with effect from midnight tonight. When VAT is included, the increase will amount to 8 cent in the price of a litre of petrol. The resolution also provides for an increase in the mineral oil tax on aviation gasoline, with effect from 1 November this year, to set it at the same level as petrol. Excise on petrol and diesel has not been increased since 2003. Over the past 18 months, there has been an unprecedented increase in the price of diesel, at a disproportionate rate when compared to petrol. While fuel prices have generally decreased over recent weeks, the price of diesel has remained higher than that of petrol. Following this proposed increase, the rate of excise on petrol on Ireland will be in the middle range, when compared to a list of EU member states. Assuming currency exchange rates remain stable, petrol in this jurisdiction will be approximately 18 cent cheaper than in Northern Ireland. The expected yield from these measures is approximately €22 million in 2008 and €166 million in a full year. It will have an impact of approximately 0.22% on the consumer price index.

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