Government set to reduce petrol and diesel cost by 15 to 20c

The reduction in excise duty will kick in from midnight Wednesday.
Government set to reduce petrol and diesel cost by 15 to 20c

Digital Desk Staff

The Government will reduce the cost of petrol by between 15 and 20 cent tomorrow in a move to tackle rising prices.

As the Irish Examiner reports, the move has been called a "mini budget" by sources and will see a straight cut in excise rates.

It will mean that diesel prices come down by 15c a litre and unleaded by 20c.

The difference is to take account of the levels allowed under the Diesel Rebate Scheme in EU law.

The reduction in excise duty will kick in from midnight Wednesday.

There will be an incorporeal cabinet in the morning, followed by a press conference at 11am with Ministers Paschal Donohoe and Eamon Ryan.

While work on excise will be ongoing overnight, fresh European Commission proposals are being assessed.

Then Finance Bill will progress through the Dáil, with any amendments from the Opposition.

Cents per litre

Sources told the Examiner it will be a reduction in cents per litre as opposed to percentage decrease.

There is some degree of urgency as any tax measure such as this requires a Dáil vote and it will be in recess next week, due to the St Patrick’s Day festivities.

At Leaders’ Questions in the Dáil, Sinn Féin called for a 25 cent per litre reduction at the petrol pumps and sought immediate action from government.

Meanwhile, hotel rooms, modular homes, defence forces accommodation as well as offers from the public will be deployed to house 100,000 Ukraine refugees, the Cabinet has heard.

Taoiseach Micheál Martin updated ministers as to the state of affairs on the ground in Ukraine and warned there is likely to be a “significant impact on Ireland” from the Russian invasion.

Ministers heard that a fourth round of EU sanctions is being prepared which will be developed further at an informal summit in Versailles this week. It will involve a travel ban and further freezing of assets of oligarchs.

"There is no question but that the war on Ukraine is going to increase further and has increased the escalation of fuel prices at the petrol pump, household costs and so on," he said. 

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