Cowen rules out cut in fuel excise duties
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'What we can do in the long term is reduce our dependency on fossil fuels and we have to work towards that end'
Fiach Kelly and Senan Molony
TAOISEACH Brian Cowen came under increasing pressure last night to cut fuel excise duties to relieve the burden on motorists and businesses as diesel and petrol prices soared.
A nationwide survey carried out by the Irish Independent shows that the price of diesel now greatly outstrips that of petrol with the average price at the pumps standing at €1.42. The corresponding figure for petrol stands at €1.30.
But Mr Cowen last night seemingly ruled out an excise cut and said that the main goal was to work towards renewable energy sources.
"What we can do in the long term is reduce our dependency on fossil fuels and we have to work towards that end," the Taoiseach said.
"I acknowledge that there are difficult factors coming into play in relation to fuel prices and it obviously affects commercial margins."
Mr Cowen said that rising costs were a worldwide problem.
The latest figures follow on from a similar survey carried out by the Automobile Association (AA) just two weeks ago which showed the average price of diesel at €1.32 -- 10 cent less than the Irish Independent survey.
And, in the same time period, the pump price of petrol jumped from just shy of €1.25 to €1.30.
The highest diesel prices came in Dublin, Cavan and Meath, where a price of €1.44 was not uncommon. The lowest price was in Tralee, Co Kerry where the pump price of diesel was €1.39.
The latest figures show a reversal of the traditional position whereby petrol was usually 6pc more expensive than diesel.
The price leaps have led to calls for the Government to re-evaluate excise duties from petrol and diesel, traditionally among the top revenue earners.
The Consumer Association of Ireland (CAI), which was asked by the Labour Party to investigate whether the petroleum industry was operating a cartel, said it would recommend excise cuts.
Request
"I think there is definitely a case for dropping excise duties," CAI's Dermott Jewell said.
"It's a request to the Government rather than a recommendation and it has to be considered.''
"Of course we would love to see it happen," the AA's Conor Faughnan said.
"Motorists are a colossally taxed group of people." The tax take from petrol and auto diesel has been rising steadily over the past five years and was €2.1bn last year.
Fine Gael energy spokesman Simon Coveney said that, although his party had no official position on excise cuts, he would "personally" like to see "tax relief" on diesel.
"The time is right for the Government to cushion the blow to motorists rather than cream off the taxation," Mr Coveney said.
"From an environmental point of view we need to encourage people to use diesel and what this will do is send people back towards petrol. It makes a joke of the Government's environment policy."
A spokesman for the Irish Petroleum Industry Association said he would not comment on prices, but claimed that rising diesel prices were due to decreased production in Europe and the greater cost of importing from places like Russia.
However, the spokesman rejected suggestions of a "cartel" as "criminal" accusations.
- Fiach Kelly and Senan Molony
