Lower petrol and diesel prices not going to last
The ongoing fall in petrol and diesel prices is set to come to an end. Prices have thankfully been falling and are now back to levels before Russia’s invasion of Ukraine.
However, it has been flagged by the Irish Government that the cost of a litre of petrol is set to jump by circa six per cent next month as it implements a phased restoration of the full excise duty on the fuel. Diesel is due to go up by 5 cent per litre on 1st June.
This will be followed by another excise duty increase on 1st September – petrol to go up by circa 7 cent and diesel by around 5 cent.
However, that will not be the end of it, as the Government plans to complete the restoration of full excise duty on 31st October, with a final increase of about 8 cent for petrol and 6 cent for diesel.
By October, this could also collide with seasonal market increases in auto fuel prices, due to winter heating fuel demands etc. And of course Russia’s war on Ukraine shows little sign of coming to an end.
It is expected that the Exchequer will gain €700 million by phasing out the reduced excise rate on petrol and diesel in a full year; 21 cent in respect of petrol and 16 cent for diesel. The tax windfall includes excise duty and VAT on the increases.