Dáil Éireann Debate, Tuesday - 23 April 2024
489. Deputy Claire Kerrane asked the Minister for Agriculture, Food and the Marine if he has engaged with the Minister for Finance on fuel excise increases given the financial pressure many farmers are facing at this time and the additional strain higher fuel costs could add; and if he will make a statement on the matter. [17734/24]
Amharc ar fhreagraBoth I and the Government are acutely aware of the cost and inflation challenges faced since Russia's illegal invasion of Ukraine. These have affected all sectors of the economy and during this time, I announced a number of specific measures to assist the agri-food sector. These included targeted measures that helped Irish farmers at a time of escalating costs.
Energy and fuel costs have risen significantly and the Government responded with a range of supports, including excise rate reductions. In light of the acute impact rising prices were having on households and business, the Government provided for excise rate reductions in the order of 21, 16 and 5.4 cent per litre on petrol, auto diesel and Marked Gas Oil (MGO) respectively. These temporary reductions were due to end initially on 31 August 2022 but, following review and monitoring of fuel prices, they were extended until February 2023 with a phased restoration beginning in June 2023, followed by a second restoration in September 2023.
A final restoration of excise rates was due to take place on 31 October 2023 but in Budget 2024, the Minister for Finance provided for a further extension until 31 March 2024 with a phased restoration occurring in two stages; on 1 April 2024 and 1 August 2024.
The Government has provided relief to consumers and businesses since 2022 through a number of support measures including these temporary reductions in excise. However, the Minister for Finance has emphasised that these measures were introduced as temporary support measures and involve an ongoing cost to the exchequer while they are retained.
While primary responsibility for taxation policy is with the Minister for Finance, I will continue to work closely with him on taxation matters relating to the agri-food sector. Minister McGrath has indicated that he will continue to monitor and review the position in the coming months in the context of the final phase of excise rate restorations due to take place in August 2024.
