Government claims 71c per litre of diesel
THE dramatic increase in the price of fuel is crippling Limerick’s coach hire operators. With a litre of diesel now standing at around €1.45, the Coach Tourism and Transport Council of Ireland, say that a coach company will spend around 47 cent on excise duty; 25 cent on VAT, and 2 cent on the National Oil Reserves Levy.
Mike Hynan of Hynan Coaches, Cappamore, claims that the ever increasing prices are ruining business.
“Diesel is too expensive, it’s the biggest factor now every month. There is plenty work to do, but we can’t always afford to do it.
“We have to maintain the same rates or we will lose customers.
“As well as losing customers, there are a good few clients looking for reductions.
“Sometimes it just doesn’t pay and you’re better off leaving the coach parked in the yard”.
Hynan coaches travel all over the country and across to the UK for a host of events, from rugby matches to Irish dancing competitions.
“People are looking for long distance pricing, two or three months down the line.
“We don’t know what the cost of fuel will be in June… we have to factor for €2 a litre.
“I had a customer looking for a quote for a trip to England in October and we couldn’t give one.
“Another group wanted us to hold firm from the 2011 season for 2012, but we can’t”.
The high government tax on fuel, he argues, needs to be reviewed.
“The government are getting 71c a litre at the moment, which needs to be reduced”.
Joe Lawlor of Joe Lawlor Coach Hire, endorsed Mr Hynan’s sentiments.
“The government are only catching themselves because people are staying at home. The revenue isn’t being generated, so the money isn’t circulating”.
He worries that the cost increase in fuel could lead to a decline in vehicle maintenance by operators.
“Upkeep of coaches is always the number priority for most operators, so I would worry that could suffer.
“We’re lucky that 80% of our business is repeat and our customers are more understanding of the situation”.
