Motor fuel prices rising

AA Ireland’s graph explaining the government tax take on motor fuels in March 2024. (NORA is a tax paid to the National Oil Reserves Agency to ensure continuity of supply.)

by Kate Heaney

HAULIERS have warned this week that the increased excise duty on fuel will see more hauliers and private motorists driving into Northern Ireland to buy fuel for their vehicles, to the detriment of border fuel retailers here.

The head of the Irish Road Haulage Association (IRHA) Ger Hyland warned the excise increase on Monday and a further one to come in August will lead to “fuel tourism” and have a negative effect on border economies.

He added that hauliers operate in a “low margin” industry and will have to pass on the increased cost of fuel to customers.

Petrol was due to increase by 4 cent a litre and diesel by 3 cent a litre on Monday.

This followed 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.

This week the Donegal News did a brief survey of motor fuel prices around the county and in Northern Ireland.

While some filling station prices had risen others remained at Sunday’s level at the time of going to press.

On Tuesday prices at various filling stations north and south can be seen in the attached photographs.

Other stations we spoke to gave the following prices per litre for petrol and diesel: Callaghan’s Gala in Burt prices were changing from petrol at €167.9 to €179.9 and diesel was €169.9 going to €175.9: O’Donnell’s Go in Crolly where petrol was €174.9 and diesel €172.9; Top in Gweedore was petrol at €179.9 and diesel €179.9. McGinley’s filling station, Buncrana Road in Derry was in sterling prices, petrol £138.9 and diesel £147.9.

The price differences across the border are because the British chancellor announced last week that he has postponed increases on fuel excise duties for 12 months, unlike in Ireland.

Lobby group Fuels For Ireland (FFI) has warned that an increase to excise duties on petrol and diesel from Monday would exacerbate cost-of-living challenges for consumers and businesses, and they called for a planned increase in August to be deferred until at least the next budget.

FFI, which represents forecourt operators Applegreen, Certa, Circle K, Greenergy, Irving Oil, LCC, Maxol, Top Oil and Valero, has reiterated calls for an expert group on taxation to be established to examine the impacts of fiscal policies related to energy.

FFI chief executive Kevin McPartlan said “the immediate impact of this decision will be felt most acutely in border counties, where the price gap between Ireland and the UK threatens the viability of local forecourts.”

Meanwhile IRHA’s Ger Hyland pointed out this week that hauliers use approximately 14 million litres of fuel a week in Ireland and are currently paying five taxes on that which means €7.84 million a week is going into the Government’s coffers from the haulage industry/transport sector.

“With the increase that’s being put back on this week, 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.

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