A rise in the cost of petrol and diesel took effect from midnight as cuts to Government excise charges began to reverse.

Petrol prices rose by six cent per litre, while diesel went up by five cent. Agricultural diesel increased by one cent.

In March of last year, as fuel prices went up and up, the Government acted and cut the excise duty on fuel.

The cuts amounted to a 21 cent per litre reduction in the cost of petrol and a 16 cent cut on diesel.

The excise increase became law at midnight, but all fuel retailers should not have to add them to retail prices immediately.

This is because excise is charged on fuel supplies that filling stations purchase and existing forecourt supplies will have had excise at the lower rate applied.

The excise increase will be law from midnight

The Minister for Public Expenditure and Reform told the Dáil that the Government is increasing excise duty on fuel because the cost of fuel is "significantly less" than it was when the duty was cut.

Paschal Donohoe was responding to Sinn Féin leader Mary Lou McDonald, who asked how the Government can justify increasing the price of fuel.

Paddy Comyn of the AA said that busier fuel stations receive new supplies a few times a day and will immediately have to pay the higher rates.

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He said the majority of motorists will see their fuel price increase by the weekend.

Two further increases in excise are planned for 1 September and 31 October, by which time excise levels on fuel will have been fully restored to early 2022 levels.

Read more:
Motorists braced for fuel excise duty increase