Fuel prices begin to fall in Ireland after excise duty cuts

Fuel prices on forecourts have started to fall after the Irish government cut taxes on petrol and diesel.

The reductions kicked in at midnight last night meaning fuel leaving depots from then onwards was subject to the lower excise rates.

From midnight the excise duty was cut by 20 cent on a litre of diesel and by 15 cent for petrol until the end of May.

Last night, the Dáil (Irish parliament) voted to approve the measures, which are part of a government support package aimed at helping people with escalating prices caused by the war in the Middle East.

Diesel prices had risen from about €1.80 (£1.56) per litre to between €2.20 (£1.90) and €2.30 (£1.99) at the weekend.

Petrol also went up to about €2 (£1.73).

RTÉ reported on Wednesday morning that diesel prices on many forecourts have fallen to around €2.09 (£1.81) per litre, with petrol dropping to around €1.85 (£1.60) per litre.

However, many service stations might be still selling existing stock on which a higher excise duty was paid meaning motorists will not be paying lower prices at some pumps until old supplies are finished.

However RTÉ is reporting that some forecourt retailers are dropping their pump prices before they get fresh deliveries to avoid criticism and allegations of price gouging.

Taoiseach (Irish PM) Micheál Martin said the measures are "targeted and temporary" and will be reviewed subject to market developments.

Martin was asked about how motorists will still have to pay a lot more for their fuel even after the excise cuts are applied.

"There are limits to what governments can do in response to a crisis of this kind and we want to ensure what we do is sustainable," he said.

He said it is not known how long the war will last and the turbulence that goes with it in the energy markets.

'Would like to have seen more'

Eugene Drennan is a former President of the Irish Road Haulage Association and runs a haulage company based in Co Clare.

Speaking on Good Morning Ulster, he said the cuts "make a welcome break" but said they are "minimalist".

"We would have like to have seen more," Drennan said.

He explained that the price cuts aren't significant enough for customers to really benefit.

"We will not reduce [prices] off the reduction yesterday.

"It's a help. We are at the table. But, if there's another glitch we have to get back to the table immediately to make any significant difference," he continued.

What else has the Irish government announced?

Aside from petrol and diesel, the NORA levy is also applied to home-heating oil. Its suspension will reduce the price by two cent a litre.

The government measures also include a VAT-inclusive three cent per litre cut in excise on green diesel.

And a temporary increase in the maximum rebate allowable under the Diesel Rebate Scheme to 12 cent per litre (from 7.5 cent per litre) until 30 June.

Heating payments to social welfare recipients will be extended for four weeks, and there will be enhancements to a rebate programme for hauliers.

The overall package, which will also include targeted energy supports for pensioners, carers and people with disabilities, is set to cost around €235m (£203m).