The current cuts will stay in place until November 1, at which point prices will increase by 10c a litre for diesel and 8c a litre for petrol when the NORA levy is restored. Picture: PA.
Excise cuts on fuel will be rolled back on a phased basis from November until the end of February, following a decision by Cabinet.
Cabinet agreed the move at an incorporeal meeting this morning.
Finance minister Simon Harris secured Cabinet approval for the move, while transport minister Darragh O’Brien secured approval to extend the cut in the National Oil Reserves Agency (NORA) levy until the end of October.
The Government last week announced that planned increases in excise from September 1 and October 1 would not happen due to continued high oil prices linked to the ongoing war in Iran.
The current cuts will therefore remain in place until November 1, when fuel prices will begin to rise as the NORA levy is restored.
The increases will take place in four stages before excise rates are fully restored by February next year.
The diesel rebate scheme for hauliers will also be extended until the end of December.
The CEO of Fuels Ireland, Kevin McPartlan, has repeated his call for a more detailed examination of fuel taxation policies and other compliance costs imposed on fuel, rather than the current “ad hoc approach”.
“We should sit down and have a considered look at this,” Kevin McPartlan told Newstalk.
“That's not to suggest that we have to reduce the overall bill on fuel, I don't think that that's a realistic prospect at all, but what we need to look at is the policy that we are pursuing, or the policies that we're pursuing, best served by the fuel taxation regime, and the other compliance costs that we put onto fuel.
“I am absolutely convinced that we're not doing a good job at the moment on that.”
The restoration of the levy was due to come into effect from September 1.
The increases will now happen in four stages, before they are fully restored by February next year.
The diesel rebate scheme for hauliers will also be extended until the end of December.
