Reducing petrol and diesel prices immediately by five cent a litre is the aim of a Fianna Fáil private members’ motion seeking a cut in fuel costs.
Party transport spokesman Timmy Dooley will bring the Motorist Emergency Relief Bill before the Dáil this evening.
“The rapidly-rising cost of fuel is putting people to the pin of their collars in terms of their household budgets. Drivers are stretched every week when they go to fill up their cars," he said.
He said drivers pay over 10 per cent (or close to €4 billion) of all revenues collected by the State, through a combination of excise duty, VAT, VRT and motor tax.
He said Bill would also provide the Minister for Finance with the power to review fuel prices every three months.
Mr Dooley said while in opposition in 2008, Enda Kenny asked for an initiative with regard to excise duties and VAT to “ensure they are not used as a further battering ram against the hard pressed consumer”.
Mr Dooley said when Mr Kenny made this comment the average fuel price was €1.32. At the moment it is near record highs of €1.65 per litre.
In response, Minister for Finance Michael Noonan accused Fianna Fáil of living in “economic dreamland”.
He said the Government has to stick to its budgetary commitments and accused Fianna Fáil of hypocrisy, pointing out that it refused to tackle the issue when in power.
“Fianna Fáil in government some years ago made an agreement in Europe that when there were spikes in the price of diesel and petrol, that governments would not react by making adjustments but over the cycle they would allow the prices to come down again,” said Mr Noonan.
