Next month’s planned fuel tax hike should be scrapped, according to fuel retailers.
Fuels for Ireland (FFI) is calling on Finance Minister Jack Chambers to postpone the planned increase set for August 1st.
The group says the Minister has "days" to take action with the Oireachtas going on summer recess from Thursday.
Excise duty last rose in April with FFI claiming a further increase "is simply gouging hard-pressed consumers."
The Government is moving forward with plans to increase excise duty on petrol and diesel as cuts introduced after the Russian invasion of Ukraine are pulled back.
It initially planned to fully reverse excise cuts last October; however, it postponed the plan until this year.
'Higher than ever'
FFI CEO Kevin McPartlan told Newstalk Breakfast the tax take on fuel has never been higher.
"The price of fuel on international markets is actually so high and the Government tax take is actually higher than it has ever been before," he said.
"That's because of those high commodity prices, then you add VAT on top of the pump price, so by adding VAT they're already compensating for the loss in excise duty.
"It's at a time when consumers are hard-pressed, businesses are hard-pressed".
Further increases
Mr McPartlan said while petrol prices peaked in June 2022 and are coming down, they are still higher than they were previously.
"Look at where you were in March 2022, look at where you were before the invasion of Ukraine," he said.
"We were considerably lower than where we are now and we have this excise duty increase which is slated for the 1st of August.
"Then on Budget Day on October 1st we'll have another 2c per litre that's going on as part of the Carbon Tax.
"On the 1st of January there'll be another 2c per litre".
Mr McPartlan said the planned increases are before VAT is added on.
Petrol and diesel prices on display at a Cork petrol station, 9-3-22. Image: AG News/AlamyMr McPartlan said taxing fuel for heating and transport also needs to be looked at.
"We're in the midst of an energy transition, moving away from fossil fuels and towards sustainable, we need to make sure that we're supporting that transition - helping people to adopt new technologies and new energy sources," he said.
"We need to make sure the State continues to collect the Revenue that it needs... but we also need to make sure that we don't leave people behind.
"It's the people who are least able to afford to buy an EV or to pay for the deep retrofit to get their home ready for a heat pump they're the people who are least able to afford this extra tax hike".
Mr McPartlan added that fuel is not a discretionary product "that people decide whether or not they're going to use based on the price".
