Trans.iNFO

Irish hauliers warn some firms “won’t make it to Christmas”

You can read this article in 4 minutes

Diesel prices in Ireland have risen by 19 cents in a single month, reaching an average of €1.92 per litre. With the Government preparing to restore 32 cents of fuel taxation in stages from September, the Irish Road Haulage Association has warned that some operators may not survive until Christmas.

Key takeaways

  • Average diesel prices rose by 19 cents to €1.92 per litre in August.
  • Fuel taxes will return in four stages between September and December.
  • The first increase will add around 10 cents per litre on 1 September.
  • Qualifying operators’ maximum Diesel Rebate Scheme repayment will fall from 12 cents to 7.5 cents on 1 October.
  • IRHA president Ger Hyland says withdrawing support now would be “political madness”.

Figures published by AA Ireland show that diesel increased by 11% between July and August, from €1.73 to €1.92 per litre. Petrol rose by nine cents over the same period to an average of €1.84.

The increase has occurred before the Government begins reversing the temporary fuel-tax reductions introduced earlier this year.

Diesel taxes to return in four stages

The Government temporarily reduced taxes on diesel by a combined 32 cents per litre. Rather than restoring the full amount at once, it plans to unwind the support progressively:

  • 1 September: 8-cent restoration of mineral oil tax, plus the return of the 2-cent NORA levy
  • 1 October: a further 8 cents
  • 1 November: a further 7 cents
  • 1 December: the final 7 cents

The changes therefore amount to a potential 32-cent increase at the pump by December, assuming other components of the retail price remain unchanged.

For a haulier buying 100,000 litres per month, each 10-cent increase represents an additional gross fuel bill of €10,000 before rebates and any commercial fuel-surcharge recovery.

Haulier rebate also falls in October

Qualifying road transport operators currently receive up to 12 cents per litre through Ireland’s Diesel Rebate Scheme when the fuel price is at least €1.43.

According to Revenue Ireland, that enhanced rate applies only until 30 September. From 1 October, the maximum repayment will fall back to 7.5 cents per litre.

Eligible hauliers could therefore face both the phased increases at the pump and a 4.5-cent reduction in the maximum rebate.

‘Many businesses will not make it to Christmas’

IRHA president Ger Hyland has urged the Government to delay withdrawing the supports, arguing that fuel prices and wider operating costs are already placing unsustainable pressure on the industry.

“Adding 30 cents back onto a litre of fuel will mean that many haulage businesses simply will not make it to Christmas,” Hyland said, according to the Irish Examiner.

He also warned that higher haulage costs would feed through into food, transport and other consumer prices, worsening Ireland’s cost-of-living pressures.

The association intends to raise the issue directly with the Government during its annual conference in Killarney on 4–5 September. Minister for Climate, Environment, Energy and Transport Darragh O’Brien and Minister of State Seán Canney are expected to attend.

Operators urged to revise surcharges

In separate guidance, the IRHA advised members to review fuel surcharges daily and adjust customer rates weekly to reflect actual diesel costs.

It also warned international operators to monitor ferry fuel surcharges, including bunker adjustment factor charges, and pass unavoidable increases on to customers transparently.

The association said delays in recovering higher diesel and ferry costs would place the additional expense directly on already narrow haulage margins, threatening both capacity and service continuity.

Tags:

Also read