TDs call for October fuel tax hikes to be reversed

The cost of fuel is now creeping up to the €2 per litre mark, Sinn Féin Finance Spokesperson Pearse Doherty has told the Dáil.

Sinn Féin has tabled a motion tonight to scrap two scheduled tax increases to petrol and diesel next month.

There is a Carbon Tax increase planned for 11 October and an Excise Duty hike is penciled in for the end of that month.

The Government has tabled a counter motion which means it will oppose the Sinn Féin call when the Dáil votes on it tomorrow night.

Sinn Féin Transport spokesperson Martin Kenny urged Government to recognise that people are "under so much pressure" and they cannot afford another fuel increase.

Junior Transport Minister Jack Chambers said the Government is acutely aware of the impact fuel price increases have had on households.

He said the Government would strategically set out its taxation policies on Budget day and would give certainty to people then.

"There will be a cost of living package for families," he said.

The Budget will be unveiled in the Dáil on Tuesday 10 October.

Minister Chambers, who sits at Cabinet, defended the planned increase in Carbon Tax saying it had a relatively small impact on fuel prices and the money is used to combat fuel poverty.

He said the Carbon Tax would also help reduce Ireland's dependency on fossil fuels.

Labour Finance Spokesperson Ged Nash said there is a huge problem with energy poverty in this country and much more must be done in the Budget to address this.

He added that Labour supports progressive taxes on fossil fuels and all carbon tax revenue should be targeted to those who need the most help.

Social Democrats TD Róisín Shortall said the proposed excise duty increase on fuel at the end of October must be reversed, because the Budget focus must be on reducing living costs.

Independent TD Thomas Pringle told the House that the planned fuel increases would add to the cost of living crisis, when so many people are worried about their keeping homes warm and their cars running.

Finance Minister Michael McGrath said the Government would continue to monitor fuel prices at the pumps before making a decision on whether there should be an excise duty increase on petrol on diesel at the end of October.

He said the Government would give the matter close consideration but it acknowledges there is volatility in the price of crude oil internationally.

Mr McGrath said the public finances are in good health and and Government will respond on Budget day to give assistance to those who need it most.