Fears Louth motorists will cross the border if fuel duties rise

Louth Fianna Fail Senator Erin McGreehan has called on the government to reconsider the upcoming hike in fuel excise duties saying motorists in Louth and other border counties will fill up in Northern Ireland if the move goes ahead.

Excise duty rates will be increased again on 1st April with an increase of 4 cents for petrol, 3 cents for diesel, and 1.5 cents for market gas oil.

Another increase is also planned for August when excise duty rates are expected to be fully restored to their original levels with an increase of 4 cents a litre for petrol, 3 cents for diesel, and 1.5 cents for market gas oil. 

Senator McGreehan said she was “disappointed” that the government was refusing to look at the matter. 

“In particular, I want to highlight the fact that the UK Chancellor of the Exchequer, Jeremy Hunt, has announced the UK will not increase its excise duty because of the cost of living and many other reasons. 

“It is postponing its increase and I hope we can also postpone our increase. There will be trade displacement, particularly along the Border region, where drivers will cross the Border to avail of cheaper fuel.

“The forecourts in County Louth will have a great reduction in demand. The fuel prices will be different. There will be an overall loss to the Irish Exchequer. 

“I urge the Department of Finance to look at this, see what we can do and ensure there is a similar policy in both jurisdictions.”

Fuels for Ireland (FFI), the industry body representing entities providing 50% of Ireland's total energy, claim that the rise will lead to a huge difference in prices at the pump with retailers south of the border at an extreme disadvantage.

They further say that the price difference will put fuel at such a disadvantage that many will face the prospect of going out of business.

Kevin McPartlan, CEO of Fuels for Ireland said:

"This will lead to a huge difference in prices at the pump with retailers south of the border at an extreme disadvantage. Forecourt operators in border constituencies are expected to face a substantial reduction in demand. 

“With many retailers situated near the Border, the price gap between Northern Ireland and Ireland will drive consumers across the Border, posing a grave threat to the viability of local forecourts.

“Secondly, the Irish Exchequer stands to suffer a considerable loss in income as fuel sales plummet due to cross-border purchases. This reduction in State revenue contradicts the intended goal of increasing excise duty.”