The Government’s decision to restore excise duty on fuel will have the effect of encouraging people to go to Northern Ireland to purchase diesel and petrol, according to the President of the Irish Road Haulage Association.
Petrol and diesel prices rose today, while most broadband, TV and mobile phone companies are also expected to increase the price of their services.
The increase in petrol of 4 cent per litre and 3 cent per litre on diesel, follows the Government decision in last October’s budget to restore the higher excise duty on fuel to the level it was before the temporary cut in 2022.
Speaking on RTÉ’s Morning Ireland, Ger Hyland said: “The price of fuel now in our nearest neighbour, Northern Ireland, is now on a par or cheaper than it is here, so we’re going to be encouraging fuel tourism and it’s going to have an effect on the economy here.”
He added that hauliers operate in a “low margin” industry and will have to pass on the increased cost of fuel to customers.
“We use approximately 14 million litres of fuel a week here in Ireland. We’re currently paying five taxes on that, there’s €7.84 million a week going into the Government’s coffers from our industry, from the transport sector.
“With the increase that’s being put back on it today, and in August, that’s going to rise to €8.68 million. It’s huge in the scheme of things,” Mr Hyland said.
He added that the increase to fuel costs will also make it harder for Irish business to compete against those based in mainland Europe.
“We, as a country, are on the periphery of Europe. The cost of getting our goods to and from market has never been as high. We’re at a distinct disadvantage to mainland Europe,” Mr Hyland said.
“Our tolls have gone up twice already this year, the Government’s coffers were never as full, we’re facing down the barrel of an election this year and we would’ve thought that the Government would’ve kicked this can down the road,” he said.
