Demands growing for fuel tax to be cut as Alliance and DUP speak out - while Treasury refuses to comment
DUP and Alliance MLAs have called for fuel tax to be cut as prices continue to surge.
At some petrol stations in Northern Ireland, diesel is now approaching £2 per litre – almost as high as it was during the spike in April, when it sparked widespread protests from hauliers and farmers.
Meanwhile petrol is almost £1.70 in places – higher than it has been since the Iran war began.
DUP MLA Diane Forsythe told MLAs in the Assembly today that businesses and ordinary commuters have been “crippled” by the “shocking” high prices, and said called for cuts on government levies.
Alliance MP Sorcha Eastwood demanded that the government “remove VAT from home heating oil and agricultural diesel”.
A week earlier, the TUV had issued a statement calling for “immediate, temporary reduction in VAT on petrol, diesel and commercial energy, together with the removal of VAT from domestic heating oil for the duration of this crisis”.
Speaking at Stormont today, Ms Forsythe said farmers and fishermen – “the backbone of our local agri-food sector” are “being hammered once again... these soaring costs run the risk of putting them under for good”.
"For transport businesses, including hauliers, it's devastating for an industry already under pressure,” she said.
"With a large coach or HGV taking around 400 litres of diesel, the recent increase could see them hitting an extra £180 for a tank of diesel on average: Mr Speaker, this is unmanageable.”
She said that “transportation services, including taxis, are contracted on rates based on the lower fuel cost at the time”, adding: “We could have children not getting to school, patients not getting to their appointments, pressures on airports and the tourism sector, sports teams, weddings: there's no aspect of our lives that this will not affect.
"We need to see an intervention on the escalating fuel costs now.”
A pause in the government’s planned 5p increase in fuel duty was announced in May.
But such a freeze “is the bare minimum” the government needs to do, she said.
"Northern Ireland remains uniquely exposed – our reliance on home heating oil, high rates of fuel poverty and poor public transport links mean we feel these pressures more acutely than most.
"The UK government must now go further, acting on our calls to remove VAT from home heating oil and agricultural diesel, and increase windfall taxes on the energy giants capitalising on crisis, in order to fund meaningful relief for families.”
HM Treasury said in a statement to the News Letter: “As has always been the case, decisions on tax are a matter for the chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.”
At present, duty for diesel and petrol is 52.95p per litre, while on red diesel it is 6.48p per litre.
In addition, there is VAT of 20% on petrol, diesel, and red diesel up to 2,300 litres.
There is also a VAT rate of 5% on domestic heating fuel and red diesel under 2,300 litres.
According to the Consumer Council, the average price of diesel in Northern Ireland now stands at 185.6ppl, and petrol at 164.1ppl.
Meanwhile 900 litres of home heating oil now averages out at roughly £1,007, heading back towards its springtime peak of £1,089 after dipping down during the summer just like petrol and diesel.