Aontú Leader Peadar Tóibín TD has called for an immediate freeze on the upcoming May Carbon Tax hike and a reduction in fuel duties following a 35c per litre surge in diesel prices over the last fortnight. With the State now collecting an additional €40 million in tax every week due to these record prices, Deputy Tóibín warned that the refusal to act is driving a crises in energy and food affordability and is damaging farm viability.
“The Deputy said “In just the last two weeks, the price of white diesel has surged by 35c per litre. This isn’t just a market fluctuation, it is a direct hit to the solvency of every household and business in Ireland. Because VAT is a percentage of the final price, the State’s tax take has automatically increased by 8c per litre in that same 14-day window. This is a massive, unearned windfall for the Department of Finance at a time when 300,000 families are in energy arrears.
“The cost of filling a standard family car has now breached the €100 mark, and a staggering €65 of that is straight tax. This has a devastating knock-on effect for the entire country. We are seeing an estimated €1,000 annual increase in the average family grocery bill as transport costs are passed on at the checkout. Furthermore, this energy-driven inflation is forcing the ECB toward rate hikes that could add €60 a month to a typical €200,000 mortgage.”
For farmers, the situation is critical. Between agricultural diesel spikes and energy-intensive fertilisers hitting €1,000 per tonne, the family farm is being pushed toward insolvency. Despite this, the Government intends to proceed with a further Carbon Tax hike this May, which will add 17c to every litre of green diesel. Aontú remains the only party in the Dáil to oppose this increase while families and farmers are at a breaking point.”
Tomorrow, hauliers will meet with the Minister for Transport under the threat of a national strike. If the Government does not agree to a meaningful reduction and a total freeze on the upcoming Carbon Tax hike, our national supply chain faces a total shutdown. The State cannot continue to accumulate record tax revenues while the foundational sectors of our economy from the grocer to the family farm are pushed over the edge.”
“There are also major questions in terms of biodiesel. Each litre of diesel also includes a portion of biodiesel. We have information that the government are charging carbon tax on the biodiesel portion of a normal litre of biodiesel. The same is true for bioethanol which is a component of a normal litre of petrol. How can a government charge carbon tax on the carbon neutral portion of petrol and diesel. Also HVO has a significant tax charge. Surely the government should be reducing the tax on HVO at this time to allow for truck drivers to dicarbon and reduce costs”.
