Hildegarde Naughton (Galway West, Fine Gael) | Oireachtas source

I thank the Deputy for the question. The European and global oil markets are currently volatile due to the conflict in Ukraine exacerbating pre-existing market shortages, primarily of diesel. This has caused a spike in the price of crude and of refined products on the retail market.

The Government is fully aware of the significant financial impact that rising fuel prices is having on the haulage sector and has been engaged with sectoral representatives in that regard. The Minister, Deputy Eamon Ryan, and I met the IRHA on 10 December 2021 and again on 10 February 2022 to discuss the issue, as well as the need for the heavy goods vehicle sector to make progress towards decarbonisation. With the outbreak of the conflict in Ukraine however, fuel prices escalated further. We met the IRHA again in that context on 9 March last. Recognising that this sudden increase in fuel price was a problem in particular for the licensed haulage sector, on 15 March 2022, the Minister, Deputy Ryan, and I proposed to the Government an emergency support measure, namely, the licensed haulage emergency support scheme. The scheme will provide support of €100 per week for eight weeks for each eligible heavy goods vehicle, HGV, authorised on the licence of a road haulage operator as of 11 March 2022. The scheme is being administered by the Department of Transport.

In addition, the Government has provided for an excise duty reduction on mineral oil taxes with effect from 10 March. This saw a 20 cent reduction in the excise rate for petrol and a 15 cent reduction on auto diesel. These measures were VAT-inclusive and were proposed to last until 31 August. On 11 April, the Government extended the period of the reduced rates out to budget day. This measure is a benefit to all citizens and businesses to mitigate the impact of recent fuel price increases. However, it should be noted that the causes of these increases are not within the control of the Government and are being directly influenced by external factors, including the Ukraine crisis.

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