Written answers
Tuesday, 9 April 2024
Department of Finance
Fuel Prices
Pearse Doherty (Donegal, Sinn Fein)
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271. To ask the Minister for Finance if he is concerned that a marked gap in the price of petrol and diesel in the South compared to the North that will result from scheduled increases in excise duty this year could pose a threat to the trade and viability of firms and petrol stations in Border counties; and if he will make a statement on the matter. [13598/24]
Matt Carthy (Cavan-Monaghan, Sinn Fein)
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314. To ask the Minister for Finance the remaining increases to fuel excise due in 2024; if he will reconsider their implementation; and if he will make a statement on the matter. [15313/24]
Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 271 and 314 together.
In 2022 in light of the acute impact rising prices were having on households and business, the Government provided for excise rate reductions in the order of 21, 16 and 5.4 cent per litre on petrol, auto diesel and Marked Gas Oil (MGO) respectively. These temporary reductions were due to end initially on 31 August 2022 but following review and monitoring of fuel prices they were extended until February 2023 with a phased restoration beginning in June 2023, followed by a second restoration in September 2023. A final restoration of excise rates was due to take place on 31 October 2023 but in Budget 2024, I provided for a further extension until 31 March 2024 with a phased restoration occurring in two stages; on 1 April 2024 and 1 August 2024.
While I recognise that households and business continue to face challenges, the Government must strike the appropriate balance between providing support and avoiding fuelling cyclical inflationary trends.
To note national average prices have eased considerably from highs of over €2.00 per litre which we saw in 2022. As per the Central Statistics Office Consumer Price Index, average national retail prices of auto diesel and petrol have decreased from approximately €1.85 per litre for both fuels in October 2023 to approximately €1.72 per litre for auto diesel and €1.71 for petrol in February 2024. More recently the European Commission Weekly Oil Bulletin shows that the national average price as of 1 April 2024 was approximately €1.73 for diesel and €1.74 for petrol.
As the Deputies will be aware, having fully considered all relevant information including recent consumer price trends, fuel market analysis and input from industry stakeholders, the Government has proceeded with the initial phase of the restoration of excise rates which took place on 1 April 2024. I will continue to monitor and review this data in the coming months in the context of the final phase of excise rate restorations due to take place in August 2024.
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