The fuel cost reductions come into effect from today, but the public is being warned there may be a delay before prices fall at the pumps.
The measures were brought in after widespread fuel protests brought much of the country to a standstill in recent days.
The new measures come on top of reductions already put in place by the Government, which were announced three weeks ago.
The new cuts are as follows:
- A reduction of the excise on diesel by 10 cents (VAT inclusive)
- A reduction of the excise on petrol by 10 cents (VAT inclusive)
- A reduction of the excise on marked gas oil (green diesel) by 2.4 cents (VAT inclusive)
These reductions will remain in place until 31 July.
Fuels for Ireland CEO Kevin McPartlan cautioned that there may be a delay in the reduction of prices at the fuel pumps.
It may take days in some cases, he said.
‘That should not be misunderstood as a failure to pass on the tax cut,” he said, adding that ‘the reason is practical’.
‘Excise is applied when fuel leaves a terminal or refinery, not when it is sold at the pump,’ he explained.
‘In recent days, the industry has been operating under disrupted conditions, and the priority has been to keep fuel moving and forecourts supplied where possible.
‘As a result, some of the fuel arriving at sites in the immediate aftermath of the change will still have left facilities at the old excise rate.’
McPartlan said there will be ‘a lag as lower-duty fuel works its way through the system.
‘Some sites may update quickly, while for others it may take 48 to 72 hours, with the overwhelming majority expected to reflect the lower rate by the weekend.’
