‘The public will be back on the streets if we do this’: As fuel hovers just below the 2 euro mark, ministers are warning of ‘a massive public backlash’ and why fresh blockades may be imminent
Divisions have emerged within the Irish Cabinet over whether to restore excise duty on petrol, diesel and green diesel, with several ministers warning that scrapping the current fuel supports could trigger renewed public protests similar to those seen in April. Finance Minister Simon Harris and Public Expenditure Minister Jack Chambers face pressure ahead of the Budget, with colleagues cautioning that reversing the reliefs while pump prices hover just below €2 a litre would provoke "a massive public backlash" and undermine any goodwill from planned tax cuts for the "squeezed middle".
The Government cut excise duty on auto diesel, petrol and green diesel by 30 cent, 25 cent and 5.4 cent respectively across interventions in March and April, and extended the reductions on petrol and diesel until 1 September. Harris has promised there will be "no cliff edge", though the current plan is to phase the rates back in over four months, a move the Tax Strategy Group estimates would cost €501.8 million if extended to year-end. Ministers told the Irish Mail on Sunday that ending the subsidies would be seen as taking back with one hand what is given with the other in tax cuts, while a senior Government source warned the row could derail the Budget before it is even published; Harris declined to confirm whether the supports will be extended or ended.
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