Excise duty on fuel set to be cut to offset sharp price increases

Excise duty on fuel set to be cut to offset sharp price increases

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The Government is likely to sign-off on a cut in excise duty on Wednesday in an attempt to counteract sharp rises in the price of fuel.

Officials are understood to be working on proposals for reducing excise on fuel to alleviate price rises caused by the sanctions on Russia following its invasion of Ukraine and the associated turmoil on global markets.

Sources confirmed that the measure would likely to be brought to a special Cabinet meeting on Wednesday and voted through the Dáil either later in the day or on Thursday.

The price of a litre of petrol and diesel passed €2 on a number of Irish forecourts this week.

Senior sources suggested that it is a question of “when not if” measures to counteract this would be implemented.

The Dáil is not sitting next week, as many Ministers will be away on St Patrick’s Day visits, and a reduction in excise would need to be approved by the House before it comes into operation.

Speaking in New York, Minister for Foreign Affairs Simon Coveney said the cost of the significant sanctions imposed on Russia would have an impact on the lives of people in Ireland.

He said, for example, that gas networks across Europe were interlinked in terms of pricing and that if there were shortages of gas, oil or solid fuel there would be a knock-on effect on prices.

Mr Coveney said the Government would try to mitigate against the negative impacts and insisted that the significant sanctions imposed on Russia were necessary responses to the country’s aggression against Ukraine.

Emergency options

Meanwhile, a Government spokesman said after the Cabinet met on Tuesday that emergency options are being examined for accommodating tens of thousands of Ukrainian refugees, while a financial stability group of senior officials from the Department of Finance, the Central Bank and the National Treasury Management Agency is meeting every week.

Sources in the Coalition confirmed on Tuesday that British officials, meanwhile, had raised concerns about the open border between the UK and Ireland in the context of different approaches between the two jurisdictions on the admission of refugees.

Irish sources played down the issue, while also maintaining that there have been no discussions about sending weapons to Ukraine.

Taoiseach Micheál Martin told the Dáil on Tuesday that the State faces a range of challenges in an uncertain period which most immediately relate to the tens of thousands of refugees expected flee to the State from Ukraine.

“What that means for us domestically – this morning the Government discussed thi

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