Nolan urges Government to cut tax on petrol and diesel amid supply uncertainty
Independent Offaly TD Carol Nolan has called on Government to immediately reduce the tax rate applying to petrol and diesel in light of the expected impact on energy prices following the military strikes on Iran over the weekend.
In response to a Dáil question from Deputy Nolan in January, Tánaiste and Minister for Finance Simon Harris confirmed that "temporary reductions in the rate of Mineral Oil Tax (MOT) applying to petrol and diesel" were introduced by the Government in March 2022 following Russia's invasion of Ukraine.
These temporary reductions were extended by the Government until August 2024, with a gradual restoration of rates occurring between June 2023 and August 2024.
Deputy Nolan has also established through the Dáil question that the cumulative revenue from MOT on petrol and auto-diesel from 2022 to 2025 was some €9.4 billion.
"Government must use every lever at its disposal to reduce the energy tax burden; indeed, a failure to do so would be indefensible given the precedent that was set in March of 2022," said Deputy Nolan.
"We know that the carbon tax element of the MOT is a grossly unfair form of taxation that is needlessly driving up costs and that these carbon tax increases are due to continue until 2030.
"If emergency legislation is needed to reverse or suspend these increases then it should be introduced without delay," she commented.
"Government may not be able to directly do anything about how long the Iranian and Middle Eastern conflict will go on, but it can certainly do something to assist people in the energy costs area and it should move swiftly to do so,” concluded Deputy Nolan.
Meanwhile, Midlands North West MEP Maria Walsh said Ireland must work in a coordinated fashion with the EU to safeguard energy supplies during the Middle East crisis.
MEP Walsh is also calling on the Commission for Regulation of Utilities (CRU), Ireland’s energy regulator, to carefully monitor the situation for any signs of price gouging in the motor fuel and electricity markets.
"With the ongoing atrocities in the Middle East, our primary focus must be on the safety of Irish citizens and Defence Forces personnel in the region," said the Fine Gael MEP.
"The Irish Government must coordinate closely with the European Union on the evacuation of citizens, in particular leveraging any safe air and land routes being used by other European countries.
"If this conflict continues, energy security could also quickly become an economic issue here at home. Ireland must engage with the European Commission on energy supply given the predicted disruptions to the oil and gas markets.
"Following Russia’s invasion of Ukraine, the European Union demonstrated the strength of acting together through joint gas purchasing and coordinated storage measures. That model of solidarity and collective bargaining power must be ready to deploy again if required," she said.
"While Ireland’s direct oil and gas imports from the Middle East are low, our supply is linked through the UK and European markets. Concerns are already being raised by consumers about overnight price hikes. These reported price increases appear to be too high, and to have arrived too quickly.
"Energy suppliers must not be allowed to exploit the situation in the Middle East for their own financial gain."