Starting from midnight, the temporary reductions on fuel and hospitality taxes in Ireland will no longer be in effect, resulting in an increase of these taxes.
In March 2022, the government reduced fuel taxes because prices rose a lot due to Russia invading Ukraine.
The cost of petrol will go up by 7 cents for each litre, and the cost of diesel will go up by 5 cents.
The tax rate for tourism, hospitality and certain other service businesses will go up from 9% to 13. 5%
The rate was reduced in November 2020 because of the pandemic.
Originally, it was planned to continue until December 2021, but it was extended twice.
Business groups wanted the lower rate to continue because they believed that an increase would make things harder for companies that are already struggling with the effects of rising prices.
Government ministers said no, because they could no longer find a good reason to have a lower rate.
But the finance minister hasn’t said no to delaying the increase in fuel taxes that is supposed to happen before the year ends.
Michael McGrath stated that the proposal to raise the cost of petrol by 8 cents per litre and diesel by 6 cents per litre would be regularly reviewed.
The prices of fuel for cars in Ireland affect the market in Northern Ireland.
A recent study from the UK’s competition watchdog showed that petrol and diesel in Northern Ireland are less expensive than in other areas of the UK. This is due to the competition from filling stations located across the border.
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Fuel taxes and lodging fees to go up in Ireland
