40 ways to improve Ireland this Lent (#3- Lower tax on Petrol & Diesel)

The Lenten challenge - 40 ways to improve Ireland today with evidence from our leading economists, business people and politicians

 

The Problem: According to the AA, average petrol prices have now gone above €1.50 per litre, with some Dublin forecourts displaying even higher prices. This means that already pressed families will have to spend €225 a month, or €2700 a year, more to run their cars than they did this time last year. The rapid rise in Irish fuel costs is been primarily driven by the rising global cost of oil, but high Irish taxes are also to blame. When you spend your €225 a month, 57% of that goes directly to the exchequer as tax. These fuel taxes are unjust at a time of economic turmoil, and are a threat to recovery.

 

The Solution: The Irish Petrol Retail Association has called upon the incoming government to not only reduce the tax on fuel, but to also introduce a "fuel stabiliser" to reduce duty as oil prices increased. This would clearly benefit consumers as the price at the pump could immediately be dropped and further budgetary changes would not be needed as the "fuel stabiliser" would react automatically to any further rise in global oil prices.