Budget Day Statement from Kevin McPartlan, CEO of Fuels for Ireland:
In response to Budget 2025, Kevin McPartlan, CEO of Fuels for Ireland, has issued an urgent call for the government to review the rising fuel taxes that have made Ireland one of the most expensive countries in Europe for diesel and petrol.
“Today’s Budget claimed to focus on reducing the cost of living but the Government is actually increasing costs on consumer with its measures ensuring that Ireland is one of the most expensive countries in Europe for diesel and petrol. Since this government took office in 2020, the taxes on fuel have soared by 20%, driving a dramatic increase in costs for consumers and businesses.”
Key Increases in Fuel Taxation:
- Petrol: The total tax per litre will rise by 21.6%, from 85.85 cents in 2020 to 104.37 cents from October 9th
- Diesel: The tax per litre will increase by 27.4%, from 73.60 cents to 93.78 cents.
For the average driver, this equates to an additional €12 per full tank, further straining household budgets and increasing costs for businesses that rely on fuel for operations.
Impact on Households and Businesses
Despite the narrative that these taxes are meant to curb fossil fuel consumption, the evidence tells a different story. Even as oil prices spiked during the war in Ukraine and fuel costs soared at the pumps, consumption didn’t fall. It’s clear that these taxes are punitive and regressive, hitting those who rely on their vehicles hardest.
Call for Immediate Review
McPartlan urged the government to take immediate action: “We are calling on Minister for Finance Jack Chambers to convene an expert group to review the current fuel tax system. It must be re-evaluated to ensure it balances climate goals with the need to protect consumers from unsustainable price increases. Our recent survey shows that 80% of motorists agree on the need for this urgent review. We urge all political parties to support the expert group and I hope to see this support reflected in the party manifestos when the election is called.
“The continuous rise in fuel prices is not only hurting consumers but is counterproductive. It risks destabilising businesses and pushing more families into financial hardship,” McPartlan warned.