Ireland’s government will finalize a package of measures by next Tuesday to address escalating fuel costs, Tánaiste Simon Harris announced Friday evening. The measures, intended to provide short-term relief at the pump and protect vulnerable households, come as oil prices continue to climb amid global supply disruptions.
Speaking on RTÉ’s Six One News, Harris indicated that a reduction in excise duty is “probably the most effective way” to quickly lower prices for consumers, citing its past apply as a successful intervention. He as well emphasized the need to support those most at risk of “fuel poverty” and to assist key sectors like haulage, which are vital to Ireland’s supply chains.
“We need to do something to help people with the cost at the pumps – with petrol and diesel,” Harris stated. “We’re going to have to do something to help those most in need… and we’re going to need to accept action to try and help key parts of the Irish economy.”
While Harris did not rule out considering a cap on energy bills, he stressed the immediate focus would be on measures that could be implemented swiftly. He acknowledged that longer-term solutions, such as energy credits, would require legislation and take more time to enact. He also cautioned that the situation is rapidly evolving, making accurate long-term predictions impossible.
“It may equally be that the situation drastically changes, maybe even improves… I accept that doesn’t look likely,” Harris said. “Or indeed that the challenge gets deeper and there’s different areas of the economy that need assistance.”
Brent futures rose to $112.58 a barrel today, a 3.66% increase, while US West Texas Intermediate (WTI) crude increased 2.78% to $98.81, underscoring the volatile global energy market.
Harris dismissed calls from Sinn Féin for legislation to cut excise duty for six months, arguing that a financial resolution would be faster and more effective. He also criticized the Sinn Féin proposal for not addressing the needs of those at risk of fuel poverty.
Kevin McPartlan, CEO of Fuels for Ireland, agreed with the Tánaiste’s assessment that “knee-jerk responses” are not the answer, but pointed to Ireland’s high fuel tax rates as a fundamental issue. “Why It’s that Ireland pays more tax than any other European Union member state for its fuel?” he asked, adding that any reduction in VAT or excise duty would likely be passed on to consumers, despite recent commodity price increases. He noted that the wholesale price of diesel had risen by 13 cent per litre in the last 48 hours, adding approximately 15 cent to the pump price when VAT is included.
Fianna Fáil TD Shane Moynihan emphasized the need for a “timely approach” and sustainable measures, stating that the government is among the first in Europe to formulate a response. Labour TD Marie Sherlock criticized the government for being slow to act, pointing to the existing cost-of-living crisis that predates recent geopolitical events.
Harris stated that the government is in a position to act due to the current health of the Irish economy, allowing for a series of short-term measures to be introduced, assessed, and revised as needed. He also highlighted the need for Ireland and Europe to reduce their reliance on external energy sources and accelerate the development of “energy independence.”
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