Irish Drivers who head to the North to evade fuel hikes in the Republic are “subsiding the British taxpayer,” an industry expert has warned.

The Government is expected to move forward with plans to increase excise duty on petrol and diesel next month as cuts introduced after the Russian invasion of Ukraine are pulled back.

The Government initially planned to fully reverse excise cuts last October; however, in the budget it postponed the plan until this year.

It means prices are due to increase on April 1st and August 1st – eventually adding 8c a litre to the price of petrol and 6c a litre to diesel.

Price differential

Meanwhile, the UK Government last week decided to extend cuts to excise rates for another year – meaning there will be a big price differential from April.

On The Pat Kenny Show today Petrel Resources Chairman David Horgan said drivers in the south will be paying 10% more excise than those in the North.

“The Government is taking a very hardline on re-imposing the excise duty reductions that were put in during the pandemic, even though the British have deferred it for another year,” he said.

“Basically, there seems to be a deliberate Government policy to make it more difficult to be a motorist and the net result is if those two increases are imposed this year, you’ll find a 5% increase just from the restoration of excise - plus VAT.”

Petrol pumps in Dublin. Photo: Sam Boal/Rollingnews.ie

Mr Horgan said the cost at the pumps regularly differs between the two jurisdictions.

“In the 80s, it used to be much cheaper in the North but in the noughties, it was cheaper in the Republic,” he said.

“It’s probably not worth your while now driving from Dublin to Newry to make a fill because the time and transaction cost will outweigh savings.

“But the tragedy for the Republic here is that instead of being subsidised by northern consumers coming across the border from the likes of Donegal, we will now be subsidising the British taxpayer.”

Government policy

Mr Horgan said the restoration of excise on petrol and diesel is a sign of things to come from Government.

“The logic of the current Government is they are trying to drive people off the road and make them use public transport,” he said.

“But many people don’t have a public transport alternative, either from age, mobility issues, or having small children.

“We need a policy whereby we give people the transport options they want – it should be the customer that decides”.

Mr Horgan said the increase at the pumps is a form of “stealth tax”.

Main image: A man holding a petrol pump nozzle refueling petroleum in his vehicle. Picture by: Miljan Živković / Alamy Stock Photo