The change was announced last autumn and came into effect yesterday. Similar increases in duty are also set to be implemented in August of this year.
Reacting to the increase in duty, Ger Hyland, President of the Irish Road Haulage Association, told RTE:
“The price of fuel now in our nearest neighbour, Northern Ireland, is now on a par or cheaper than it is here, so we’re going to be encouraging fuel tourism and it’s going to have an effect on the economy here.”
Hyland added:
“Our tolls have gone up twice already this year, the Government’s coffers were never as full, we’re facing down the barrel of an election this year and we would’ve thought that the Government would’ve kicked this can down the road,” he said.
Fuels for Ireland (FFI), an industry body representing fuel stations on the country, also criticised the move.
Kevin McPartlan, chief executive of Fuels for Ireland, said that as a result of the UK Government retaining its fuel duty cut, there will plenty of people who decide to fill up in Northern Ireland – particularly once the second duty increase applies in August.
“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.”
In light of the situation, Fuels for Ireland has also called for an expert group on taxation to be established so as to examine the impacts of fiscal policies related to energy.