Dublin: Taoiseach Michael Martin has said that the upcoming Budget will place the cost of living at the centre of the Government’s priorities, including measures aimed at easing pressure on households facing rising fuel and other essential costs.
Speaking in Belfast, Martin said the government would use tax measures to reduce the burden on workers and address costs in areas including fuel, childcare, housing and disability services.
“The upcoming budget will focus on the cost of living, in terms of fuel costs and so on. Through tax measures, we will reduce the burden of income tax on workers,” Martin said.
He added that reducing childcare costs would also play an important role in easing household pressures, while measures relating to housing and disability would form part of the Government’s wider cost-of-living strategy.
Fuel tax reversal sparks criticism
The government’s decision to begin restoring temporary reductions in fuel excise duty from September has, however, triggered growing criticism from opposition parties and industry groups.
Fuels for Ireland, the Irish Road Haulage Association (IRHA) and Sinn Féin are among those calling for the government to reconsider the move.
The temporary excise duty reductions were introduced in March amid international fuel market uncertainty. Fuels for Ireland argues that fuel prices are now significantly higher than they were when the reductions were introduced and that restoring the taxes at this stage would place additional pressure on households and businesses.
Warning of fuel prices exceeding €2 per litre
Fuels for Ireland chief executive Kevin McPartlan said current diesel prices are already around €1.91 to €1.93 per litre.
He said that restoring approximately 30 cents in excise duty, together with the 2-cent National Oil Reserves Agency (NORA) levy, could add around 32 cents per litre to the price.
McPartlan warned that further increases resulting from carbon tax changes and adjustments to the Renewable Transport Fuel Obligation (RTFO) could push the overall increase to as much as 35 cents per litre.
He described the decision to restore the temporary measures as a serious mistake and called for a comprehensive review of all elements contributing to fuel prices.
“Fuel is not a discretionary product. People cannot simply decide not to use it,” McPartlan argued, highlighting the importance of fuel for commuting, education, household needs and business activity.
Sinn Féin calls for delay
Sinn Féin has also called on the Government to maintain the fuel tax reductions until the October Budget, arguing that the measures should not be withdrawn during the Dáil’s summer recess.
Independent Ireland leader Michael Collins warned that higher fuel costs could contribute to business closures, job losses and further financial pressure on families already struggling with living costs.
Haulage industry warns of €2.20 fuel
The Irish Road Haulage Association has urged the government to maintain the fuel supports, warning that the transport sector and rural economy would be particularly vulnerable to higher prices.
IRHA president Ger Hyland said Ireland’s position as an island economy makes an efficient and affordable transport system essential.
He said fuel is a major expense not only for haulage companies but also for households that depend on cars for commuting, shopping and other daily activities.
With fuel prices already approaching €2 per litre, Hyland warned that removing the current Government support could push pump prices above €2.20 per litre, creating an additional burden for workers and businesses.
The growing opposition puts further pressure on the Government as it prepares the October Budget, with the Taoiseach promising measures to ease the cost of living while industry groups warn that fuel taxation could move in the opposite direction.
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