LOCAL Independent Ireland TD Richard O’Donoghue has described fuel tax as a “reverse ATM” for the exchequer.
As the price of a litre of diesel and petrol creeps ever closer to €2, Deputy O’Donoghue has criticised the government over its reinstatement of excise duties and increase in carbon tax.
“The escalating fuel prices are having a catastrophic impact on all road users, particularly rural motorists who rely on their vehicles for daily commuting,” Deputy O’Donoghue claimed.
“Government-induced taxes constitute over half of the cost of a litre of petrol, and the effect on ordinary citizens across Limerick is devastating.”
The Ireland Independent TD said he has “persistently argued that fuel excise duties should have been reduced and carbon taxes frozen pending a review of their effectiveness and efficiency”.
“It is only a matter of time before the rise in excise duty on fuel impacts prices across the wider economy, including food prices, as delivery trucks are fuelled by petrol and diesel.”
He added that once the full rate of excise is restored in August, the exchequer will benefit by more than €700million over 12 months, bringing the annual fuel tax collection to almost €4billion. The respective figures for County Limerick alone are around €40million and €160million, he claimed.
“The Government needs to take decisive action here. They need to postpone the August rise in excise duty and reverse all the other increases. It is incomprehensible why any government would continuously make life so difficult for its citizens.
“From January 2021 to March 2024, the average cost of living rose by 20 per cent. Food costs increased by 20 per cent, health insurance by 16 per cent, mortgage repayments by a staggering 77 per cent, rents by 27.5 per cent, electricity by 55.7 per cent, and dining out by 17 per cent. These substantial price hikes underline the ongoing cost-of-living crisis. Wage growth has not kept pace with these increases,” he concluded.
