Brendan Smith (Cavan-Monaghan, Fianna Fail)
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395.To ask the Minister for Finance the measures that will be introduced to assist the retail sector in the Border region due to difficulties that have arisen in trading with increased excise costs on energy products and the resultant loss of trade in other goods as well; and if he will make a statement on the matter. [33161/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Government is conscious of the implications of fuel costs for all sectors of society. This is reflected in the fact that in 2022, in light of the acute impact rising prices were having on households and businesses, the Government provided for temporary cuts in excise rates which, inclusive of VAT amounted to 21 cents, 16 cents and 5.4 cents per litre on petrol, auto diesel and marked gas oil (MGO), respectively.

These temporary cuts to excise rates were initially due to end on 31 August 2022, but following review and monitoring of fuel prices, were extended until February 2023, with a phased restoration of rates occurring in June and September 2023. A final restoration of excise rates was due to take place on 31 October 2023, but Budget 2024 provided for further extension until 31 March 2024, with phased restoration occurring in April and August 2024. The first of these restorations took place on 1 April 2024 adding 4 cent per litre to petrol, 3 cent to auto diesel and 1.7 cent to MGO.

A number of factors affect the final retail price of fuels including energy market dynamics, wholesale pricing, individual retail pricing policy, transport costs, exchange rate fluctuations and taxation. It is important to note that despite the restoration of excise rates which occurred in April 2024, national average retail prices have shown steady decreases in recent weeks. While national average prices as of 13 May 2024 were approximately €1.84 and €1.78 per litre for petrol and auto diesel respectively, more recent prices as of 15 July 2024 were approximately €1.77 for petrol and €1.71 for auto diesel. According to the Consumer Council of Northern Ireland equivalent prices as of 18 July 2024 were €1.67 for petrol and €1.70 for auto diesel (ECB exchange rate 18 July 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. The Government has provided relief to consumers and businesses since 2022 through a number of support measures including temporary reductions in excise. However, these measures were introduced as temporary support measures and involve an ongoing cost to the exchequer while they are retained.

I and my officials will of course continue to monitor and review energy prices.

With regard to future tax measures to support this sector, as the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.