Dáil Éireann Debate, Tuesday - 27 February 2024
139. Deputy Kathleen Funchion asked the Minister for Finance if he will reconsider the proposed end to the motor fuel subsidy on 31 March 2024, as planned (details supplied); and if he will make a statement on the matter. [8675/24]
View answerAs the Deputy will be aware, in 2022 in light of the acute impact rising prices were having on households and business, Government provided for excise rate reductions in the order of 21, 16 and 5.4 cent per litre on petrol, 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 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 legislated to occur in two final 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 in October 2023 to approximately €1.69 per litre for diesel and €1.68 for petrol in January 2024. More recently the European Commission Weekly Oil Bulletin shows that the national average price as of 19 February 2024 was approximately €1.70 for both fuels.
In conclusion, I have no plans to postpone the excise restorations of 8cpl for petrol and 6cpl for diesel, the first phase of half these amounts ( 4cpl and 3cpl respectively) which is due to commence on 1 April 2024.
