Postpone fuel excise duty increase, FFI urges Ireland government

DUBLIN, Ireland: Industry body Fuels for Ireland (FFI) is urgently urging the Minister for Finance and the Government to postpone the planned increase in excise duty on fuels scheduled for April 1.

This call comes amidst concerns that the hike could endanger businesses, particularly fuel retailers in border counties.

Following the British chancellor's decision to postpone fuel excise duty increases for 12 months, the FFI stresses the need for Ireland to follow suit.

The proposed duty hikes in April and August could create significant price disparities between fuel pumps in Ireland and the UK, putting retailers in counties Louth, Cavan, Monaghan, Leitrim, Sligo, and Donegal at risk of closure.

Kevin McPartlan, CEO of Fuels for Ireland, warns of a potential 15 percent per liter price difference between the mentioned counties and stations across the border by August. He emphasizes the severe pressure this would place on retailers, with many facing the threat of going out of business.

"This will lead to a huge difference in prices at the pump with retailer south of the border at an extreme disadvantage. Forecourt operators in border constituencies are expected to face a substantial reduction in demand. With many retailers situated near the Border, the price gap between Northern Ireland and Ireland will drive consumers across the Border, posing a grave threat to the viability of local forecourts."

McPartlan added, "Secondly, the Irish Exchequer stands to suffer a considerable loss in income as fuel sales plummet due to cross-border purchases. This reduction in State revenue contradicts the intended goal of increasing excise duty."

"Fuels for Ireland urges the Minister for Finance and the Government to reconsider the decision to increase excise duty and to postpone it in light of the UK's actions. Additionally, we call for the establishment of an Expert Group on Taxation to assess the broader implications of taxation changes, especially in alignment with our commitment to achieving net-zero carbon emissions by 2050."

FII also stressed the importance of prompt action to safeguard businesses and the nation's economic well-being.