The on-going fall in petrol and diesel prices is set to come to an end. Prices have thankfully been falling and are now back to levels at the time the Russian invaded Ukraine.
However, it has been flagged by the Government that the cost of a litre of petrol is set to jump next month as the Government implements a phased restoration of the full excise duty on the fuel. Diesel is due to go up by five cents per litre on June 1.
This will be followed by another excise duty increase on September 1 with petrol to go up by seven cents and diesel by five centrs. However, that will not be the end of it, as the Government plans to complete the restoration of full excise duty on October 31, with a final increase of eight cent for a litre of petrol and six cent for a litre of diesel.
By October, this could also collide with seasonal market increases in auto fuel prices due to winter heating fuel demands etc. And of course the Russia and Ukraine war shows little sign of coming to an end.
It is expected the Exchequer is expected will gain €700m by phasing out the reduced excise rate on petrol and diesel in a full year. The tax windfall includes excise duty and VAT on the increases.
In total 21 cent per litre was the excise duty reduction on petrol, and 16 cent per litre on diesel.
