IF FUEL PRICES rise significantly into the autumn, the government would have to consider the planned incremental excise increases, according to Public Expenditure Minister Jack Chambers. 

However, the minister said the current position, as it stands, is for the excise cuts to be unwound, starting in September.

A phased restoration of the full excise duty on fuel prices will be gradually reintroduced by December.

For petrol, this includes a nine cent increase per litre on 1 September, an eight cent increase per litre on 1 October, a five cent increase per litre on 1 November, and a five cent increase per litre on 1 December.

For diesel, it involves a 10 cent increase per litre on 1 September, an eight cent increase per litre on 1 October, a seven cent increase per litre on 1 November, and a final seven cent increase per litre on 1 December. 

At Government Buildings on Wednesday, Chambers was asked about the latest fuel price analysis which shows diesel prices are falling, but petrol prices have increased. 

Price volatility 

“The price dynamics are highly volatile,” said the minister.

“What we’re doing is, we’ll assess that in early September. We’ve said we’ll keep the wider position under review. In parallel with that, we saw a significant fall-off in prices. There appears to be a move towards some sort of agreement [between the US and Iran] which could stabilise or reduce prices, and it might fall back quite significantly by the end of August,” said Chambers. 

“Clearly, if prices significantly rise, we will have to consider that in the autumn,” he added, but the current plan to unwind the excise cuts remains in place. 

“We can’t have permanent reductions in excise indefinitely, but we are cognisant of the volatility of price dynamics, and we’ll assess that at the time,” said Chambers.

On Budget 2027, which will be on 6 October, the public expenditure minister said the government wanted to “reward work and support workers”.

He said they would be due to spend €125 billion next year, but said it was important that they “prioritise reform for better public service delivery” and “keep the focus” on building housing and public infrastructure.

He said there would be a surplus of up to €9 billion and €24 billion would be set aside for two long-term savings funds.

“We’re slowing it on day-to-day spending, and that’s for two or three reasons, first of all, to manage the risk which is there,” he said.

“I will not agree to a budgetary framework which risks Ireland’s future, and I think people expect us in managing their taxpayers’ money to be very careful in the decisions that we make.

“I think people expect us in managing their taxpayers’ money to be very careful in the decisions that we make, that we don’t have expansion at a time when there’s risk, and that’s why we’re slowing the level of spend.”

With reporting by Press Association