Michael McGrath says final petrol price hike will be kept 'under review'
It comes as prices at the pumps have risen dramatically again to an average of €1.85 per litre of petrol and €1.80 per litre of diesel,
Finance Minister Michael McGrath has said that the final reversal of excise duty cuts on petrol and diesel will be “kept under review”.
It comes as prices at the pumps have risen dramatically again to an average of €1.85 per litre of petrol and €1.80 per litre of diesel, according to the AA.
The Government cut excise duties in March 2022 as prices reached €2.20 per litre.
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Following several delays to plans to reverse excise duty cuts, it was decided that it would be reimplemented on a phased basis. There were two increases in June and September of 2023 and a third increase last month.
The final reversal of the excise duty cut is due to come in on August 1.
However, Minister McGrath told reporters on Thursday that it will be kept under review as he acknowledged the “volatility” of oil prices.
“For a period of time a barrel of oil was hovering at around $80,” he said.
“It crept up towards $90 and now it's fallen back down again in recent days.
“Of course, the wider geopolitical environment and the conflict that we're seeing in parts of the world, including the Middle East is feeding into that volatility.
“The commitment I've given is that I will keep the issue under review. The final phase of the restoration of the excise reduction falls on August 1, so that issue will need to be considered closer to the time.
“I am conscious of the impact of changes in factors that are outside our control, in terms of foreign exchange rates, the cost of barrels of oil, refining costs and so on. But I'm also conscious of the impact of domestic decisions.
“The excise reduction was always to be temporary. It was introduced in March of 2022 and has involved well over €1bbn of revenue foregone over that period of time as a result,
“Most of the reduction has now been restored. There's one final step left and I've given a commitment to keeping that under consideration. Over two weeks ahead, I will discuss that with colleagues in government and make a final decision.”
Mr McGrath said a number of factors will be taken into account when it is time for the final excise restoration, including the “cross border dynamic” and the “overall burden of fuel prices”.
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