Excise duty on fuels will be fully reinstated over the coming months, with the first excise increment to be readded to pump prices from June.
The Government announced the phased restoration of fuel excise over three dates between June and October in its latest cost of living package.
By November, green diesel will see an extra 5c/l levied when compared with the tax paid on a litre today, while white diesel and petrol will rise 16c/l and 21c/l respectively.
Taoiseach Leo Varadkar suggested that the phased nature of the reintroduction will prevent those who use fuel from facing a sudden spike in costs.
No cliff edge
“We have made sure there is no cliff edge on fuels and energy costs. Lower VAT and excise rates will continue to apply on gas, electricity, petrol, diesel and marked gas oil until October,” he said.
“The next energy credit is also due in March, as announced previously.”
Full excise relief on fuels will remain until 1 June, when duties on green diesel will rise 1c/l, 5c/l on white diesel and 6c/l for petrol.
On 1 September, this excise duty is set to increase another 1c/l for agri diesel, 5c/l for white diesel and 7c/l for petrol.
The final instalment of putting excise back on fuels will come on 31 October, when excise on green diesel is upped 3c/l, 6c/l for white and another 8c/l is added to petrol.
Temporary reductions that had been in place on the rate of VAT charged on gas and electricity have been extended until 31 October this year.