Are more fuel price hikes sustainable?

Are more fuel price hikes sustainable?

Are more fuel price hikes sustainable?Homeowners & businesses are taking another financial hit this month as fuel prices continue to soar. According to the Central Statistics Office (CSO) the cost of living rose in February at its fastest pace in almost three years as the annual rate of inflation reached its highest level since November 2008.

Inflation is now at 2.2% with prices up by 0.8% in February alone. The CSO said the biggest contributor to the annual inflation rate was the housing and fuel category, where prices rose by 9.5% with liquid fuel prices rising by 37.3% – this is before petrol prices shot to €1.52 in some areas during the past week.

Reports say that a combination of taxes and tensions in Libya have combined to push up petrol prices to a new high of €1.50 a litre but petrol station owners are calling on the Government to reduce fuel duties to stop spiraling prices at the pump as taxes account for more than 57% of the cost of fuel.

ISME (Irish Small and Medium Enterprises) said the prices rises were causing concern for small businesses and called for a reduction in excise duties on fuel to offset inflation. “With geopolitical uncertainties…oil prices will remain high, driving inflation higher in the coming months, with the resultant negative impact on the economy”.

Have your say:

  • Are future fuel price hikes sustainable?
  • Should the Government reduce fuel duties?
  • Has the cost of living risen too high?
There are 8 comments for this article
  1. cres at 9:00 pm

    The Irish politician should be more careful on how to handle the situation in this country, incresing tax will not resolve anything will bring this country to the same level as the 3rd countries with a lot of poverty, the profecional people are leaving the country because the goverment is making misserable the life here, and who are the profecional the people that are supporting the economy, supporting the unemployement. This country will be in ruin very soon. Fuel price is unaceptable how the people will go to work if the public transport here is one of the worst and spensive public transport not only in Europe it is one of the worst in the world. Sorry but this is the truth.

  2. Harry at 8:49 pm

    Of course the gruberment need to do something, but will they? I doubt it… not until there are fuel riots all over the place.

    Unfortunatelly the di*kheads in Fianna Failure have turned a huge amount of private debt into state debt in order to bail out the French and German banks who engaged in reckless lending (what? did you think the Irish banks just took it upon them selves to print all that money on their own), thereby repeating the monumental f**k-up of the 1977 election/1980 budget that plunged this country into a recession for 15 years.

    This country is going to be a recession until the millstone of this bail-out is removed, either by defaulting or restructuring the loan.

    Yes! the government needs to do something other than the current idiotic behavior of constantly increasing taxes, the general population has already reached the point of diminishing returns, further increase in taxes and interest rate will not just reduce the amount of money in the economy, it will drive people into negative income rates where they will not actually have enough money to make ends meet.

    But the grubermant won’t do anything about it, why? because it doesn’t affect them, they’ve got their 100K salaries, their 53€ per day for just turning up at the Dail bar, their 70K+ expenses, hell if they live far enough away from Dublin, they can get a second mortgage on a property in Dublin and claim 100% tax relief on it.

    Some people are more equal than others

  3. Louise at 4:25 pm

    I had to move back to Westmeath last September as i have a house there that i can’t rent out. I drive to Dublin 5 days a week for work which costs me €380 per month for fuel, the government needs to look at the reality of our country & it’s citizens & what we can do to survive this whole financial crisis!!!! I’ve had a wage DEcrease twice since i startd this job 3 years ago, so between levy’s, fuel increases, property taxes, inflation & a whole lot more i won’t have the money to put petrol in my car to get to work to pay for this country’s mistakes – it makes me sick!!! We’re being laughed at by the rest of the world! Take away our wages & increase our outgoings – where would you get it?

  4. Stephen, Roscommon at 3:43 pm

    Duty on oil-based products is excessive in the British Isles and has been for years. In the UK it is 80% and ROI 70%.
    The new government should have a ‘duty amnesty’ of 40% over the tourist season April 1st then raise it to 50% October to Dec 31st.
    During the late year the government should study effects on the cost of living, mobility, vehicle purchase and consider a permanent 50% duty in line with Continental neighbours.
    If they are serious about kick-starting the economy, this is one way.

  5. Peter O’Connor at 1:47 pm

    While the oil prices are high we should contemplate that these prices will soon be the norm as less and less new oil is discovered and new emerging markets soak up all that is now available. It’s really unfortunate that this happens now while unemployment is so high but even so people really should try to install systems to reduce their oil consumption – be it solar panels or a smaller car/less driving. Fitting solar is a no brainer yet there’s still opposition against it – not just because of the costs. We run a B&B and could not stay in business if we didn’t have solar to heat the water. It also helps keep the radiator water warm too something that’s oftimes forgotten.

  6. Colm at 1:45 pm

    The ECB are increasing interest rates. The petrol producers and retailers are increasing prices. The Government are increasing taxes. Prices across the board are increasing (food, health insurance etc). Where they all think the money is going to come from is beyond me. I saw a figure that said the average family in an average boom purchased house will be out ~$250 a MONTH after the six interest rate hikes that are coming to control the price of bread in Berlin. The government need to find ~€300 a month from the same family to meet the EU/IMF reparation payments. Price rises across the board will take ~€100 a month from that family (and that assumes that Saudi Arabia holds stable because if they collapse then petrol will break through the €3 per litre very quickly).

    Do you have €650 left at the end of the month at the moment? I know I don’t. I’m lucky to have 65c in my pocket come the next pay cheque. I just can’t survive in Ireland any more. It’s time to leave.

  7. Paddy Fuel Poor at 1:23 pm

    Thanks to crazy green party policies we have tax, tax and more tax on our fuel while Ryan and Gormley are fired but leave office after only 3-years on the job with huge pensions funded by us taxpayers.

  8. Brenda Duffy at 1:11 pm

    Something has to be done to help people. Fuel prices going up may bring more money into the government, but soon people wont be able to fill their cars to drive to work.
    Prices are going up and with incomes are going down. My household is down over €37K per year since 2009, that is a huge loss. We are bearly making ends meet and dont see any light at the end of the tunnel.

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