A Clare TD says the Government is treading a fine line to avoid hyperinflation pushing the country into recession.
Cuts to fuel excise duty, which take effect today, will remain in place until the end of May, with an option to extend them depending on global oil prices.
Some fuel forecourts have already started to drop their petrol and diesel prices, now that excise duty cuts for petrol and diesel have come into effect.
Many could remain unchanged for a number of days though, as service stations sell off older stock bought at higher rates.
The Dail voted to approve reductions last night that will see petrol and diesel lowered by 15 cents and 20 cents per litre at the pumps respectively, along with additional supports for hauliers and coach services.
The measures are part of a €235 million Government plan to offset rising fuel prices due to the conflict in the Middle East.
Opposition parties say the measures don’t go far enough, but Meelick Fianna Fáil TD Cathal Crowe insists the Government’s response must be measured and will remain active.
There’s no cut to excise on home heating oil, but the two cent per litre NORA levy will be temporarily removed.
The fuel allowance will also be extended by four weeks, giving 470,000 households an extra €38 per week, but there are no new supports for the roughly 750,000 households relying on fossil fuels for home heating.
Clare Sinn Féin TD Donna McGettigan has described the Government’s approach as an “absolute insult”, saying many people are being left to choose between heating and eating.
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