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Dáil returns early from summer holidays today to postpone planned excise increases

TDs will gather in Leinster House for a one-hour session to vote through the deferment of excise increases.

THE DÁIL RETURNS early from its summer break today so that the planned excise duty increases can be postponed.

Ministers signed off on the extension of fuel supports on Thursday but the Dáil must formally vote and approve the measure today.

The government has said the temporary reductions to fuel excise, which were extended in June, will now be extended beyond September.

It is understood the extension will remain in place until November and will be tapered out by the end of February. However, senior ministers have consistently said the situation is fluid and will be kept under review as the war in the Middle East develops.

The cuts were introduced in response to protests against high fuel prices in April that included the blockading of an oil refinery in Cork.

Following the protests, the government increased temporary fuel excise cuts to 32c on a litre of diesel and 27c for petrol. The cuts came as part of a wider fuel support package of €750 million.

TDs will gather in Leinster House at noon today where a debate and vote on the motion to extend the fuel supports.

One-hour Dáil session to vote on motion

It is expected the Dáil session will be just over an hour.

Politicians will then return to their summer holidays before returning to Leinster House on 16 September for the autumn session.

Speaking on Newstalk on Thursday, Minister for Climate, Energy and the Environment Darragh O’Brien said it is correct that the government step in as fuel prices remain elevated.

The minister said the deferment will cost about €430 million.

Extending the supports to November brings the measures beyond the budget, said O’Brien.

Any further changes to excise will be part of an annual outlook that will be discussed as part of budget discussions.

He also confirmed that the carbon tax increase, which was deferred, and is due to kick-in in October, will also be considered as part of the budget discussions.

Earlier this week, Tánaiste Simon Harris also brought the carbon tax increases into question, stating that the trajectory of the increases were decided upon before the wars in Ukraine and the Middle East.

Sinn Féin has said they will not support the plan as it involves increases to the excise rates kicking in this year. The party will propose its own amendment to delay the reversal of supports further.

The Labour Party and the Social Democrats said it will support the government’s plan.

Labour is calling for targeted energy credits to be included in this year’s, budget, while the Social Democrats are calling for a €400 energy credit for households with an income of less than €70,000.

Aontú leader Peadar Tóibín accused the government of “making it up as it goes along” on fuel tax hikes.

“The excise hikes are wrong and should be scrapped. But instead we get ever-changing deadlines and flailing around.”

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