Government needs to intervene in pump panic – Sinn Féin

Wexford Sinn Féin has renewed its call on the government to lower the excise duty and VAT on fuel to prevent a ‘pump panic’ this autumn. The cost of petrol has increased to €1.70 a litre in many petrol stations across the county, a hike that Sinn Féin Cllr Anthony Kelly feels will seriously impact upon prospects of economic recovery. According to the Irish Petrol Retail Association, up to 57% of the price paid for fuel at the pump goes back to the government in tax.

“The high price of petrol and diesel is having an adverse effect on consumers across the country,” Cllr Kelly said. “It is impacting on families who often have no choice but to keep a car for lack of an efficient public transport system. It is impacting on businesses who are already struggling without the extra cost of rising fuel prices. It is impacting on farmers who have seen the price of agricultural diesel increase by 54% in the last two years.”

“A combination of rising international oil prices, a weak euro and insanely high government taxes on fuel has led to the rise in prices at the pumps. The startling point about all of this is, that while we can’t prevent the external issues that are causing the rise in cost for importing oil, it is within our governments remit to lower and stabilise the cost of petrol and diesel at the pumps immediately.”

“The Irish Petrol Retail Association estimate that up to 57% of the price paid for fuel at the pump goes back to the government in tax. AA Ireland puts the figure at 60%. Action must be taken now to prevent a pump panic this autumn.”

“In last December’s budget Fine Gael and Labour added 1c on a litre of fuel. In the three years before that Fianna Fáil added 14c onto the price of a litre of petrol and diesel.”

“Clearly there is room for the government to lower the excise duty and VAT on petrol and diesel in the interest of the public and economic recovery. Unaffordable high prices at the pumps will benefit no one in the long term. Easing the burden on under pressure businesses and struggling families makes economic sense as well as being the right thing to do.”