Fuels for Ireland (FFI) has issued new information that forecasts that Ireland will lead the EU in fuel taxation following the government’s upcoming budget in October. The combined impact of recent tax hikes and forthcoming increases will push Ireland to the forefront of fuel taxation across Europe. 

After the excise duty increase on August 1st and the anticipated October carbon tax rise, petrol prices in Ireland will be taxed at 57.2%, elevating Ireland to third place in petrol taxation within the EU. Diesel taxation will reach 54%, positioning Ireland at the top alongside Malta for the highest tax proportion in diesel prices, according to FFI’s latest forecast.

The latest report from Fuels Europe, and based on February 2024 data from the EU Commission, reveals Ireland’s already high fuel taxation levels. At that time, Ireland was ranked third in diesel taxation and seventh in petrol taxation across the EU. However, this report does not account for the additional tax changes that have occurred since then. 

The implications of these rising taxes will be felt by consumers and businesses alike, but particularly by those in border regions, who are already facing challenges due to fuel price disparities with Northern Ireland.

In light of these developments, FFI is reiterating its call for the establishment of an Expert Group on Taxation. This group would bring together a diverse range of stakeholders, including government departments, the Revenue Commissioners, economists, environmental specialists, and fuels industry representatives, to develop a balanced fiscal strategy. This collaborative approach aims to ensure that energy policies support both the transition to sustainable energy and the affordability of fuel, while safeguarding state revenue.

Kevin McPartlan, CEO of Fuels for Ireland, stated, “With the upcoming budget poised to introduce further tax hikes, we need to address the significant impact these changes will have. Immediate action is required from the government to establish an expert group on taxation to develop a well-balanced fiscal policy that addresses these pressing issues and alleviates the economic strain on all stakeholders.”