Minimal agri-diesel cut set to be undone seven weeks later - Carthy

The limited action taken by government on agri-diesel costs will be undone just seven weeks after it was introduced, says Deputy Matt Carthy.

Sinn Féin spokesperson on Agriculture recalled that the government had reduced excise on agri-diesel by just 2cent per litre from March 10.

The widely criticised move saw the price reduce from €138.17 to €120.55 per 1,000 litres.

However, Deputy Carthy notes that the carbon tax element of excise duty on the fuel is set to increase on May 1 – bringing the charge back to €138.17.

“The 2c per litre excise cut to agri-diesel was minimal and insufficient," said Deputy Carthy. "But farmers and contractors will be astounded to learn that the reduction will be undone after just seven weeks if the carbon tax hike goes ahead on May 1.

“This was confirmed by Minister Paschal Donohoe at the Oireachtas Finance Committee. He acknowledged that the excise take on agri-diesel will return to its March 9 level in May and that it will then increase further to €158.50 in September when the temporary measure expires.

“These figures are not impacted by the criminal Russian invasion of Ukraine, by international factors, or by any other global influences - this is the money that government is charging on agri-diesel that they could and should reduce.

“Essentially, farmers and farm contractors have got seven weeks of a minimal fuel reduction at a time when input costs are pushing them to the brink."