The Government is to stall planned increases to fuel excise duty that were due to kick in at the start of next month. <\/p>\n
A statement from Government Buildings issued on Friday confirmed that planned increases for September 1st and October 1st will not go ahead. <\/p>\n
\u201cIn June the Government announced an extension of the temporary reductions to fuel excise and the National Oil Reserves Agency Levy and to avoid any cliff edge removal of supports, it set out a pathway to gradually restore rates to pre-reduction levels, starting from September 1st,\u201d the Government statement says.<\/p>\n
\u201cHowever, it is clear that in the intervening period there has been a change in the global situation and as a consequence the cost of petrol and diesel for consumers.\u201d<\/p>\n
\u201cThe Taoiseach, T\u00e1naiste and Minister of State Se\u00e1n Canney have kept in close contact in recent days and weeks and this morning agreed that the planned increases on September 1st and October 1st will not now go ahead.\u201d<\/p>\n
\u201cThe Government will agree the next steps next week.\u201d<\/p>\n
Five sources with knowledge of discussions said a recall of the D\u00e1il was likely to give effect to the decision, with next Friday targeted as the sitting date.<\/p>\n
It comes after Coalition backbenchers began to pressure the Government to extend the excise cuts – as did the Opposition<\/a>.<\/p>\n There had also been a shift in tone from senior Government figures in recent days, with Minister for Finance and T\u00e1naiste Simon Harris telling his backbenchers all options were on the table, while Minister for Enterprise Peter Burke said on Thursday a D\u00e1il recall was under review.<\/p>\n On Thursday night, Sinn F\u00e9in<\/a> leader Mary Lou McDonald<\/a> wrote to Taoiseach Miche\u00e1l Martin demanding that he recall the D\u00e1il<\/a> next week so it could vote to delay the first stage of the planned reversal of fuel<\/a> excise duty cuts.<\/p>\n Minister of State at the Department of Transport Se\u00e1n Canney said the Government would keep the restoration of the excise cuts under review so long as the geopolitical situation remained uncertain. <\/p>\n Speaking on RT\u00c9\u2019s News at One he said the D\u00e1il would be recalled for one day to secure approval of the decision to defer the planned partial restoration in September and October. <\/p>\n He could not say what would happen beyond then, but, if necessary, supports would be kept in place until there was \u201csome levelling out and going back to normality\u201d.<\/p>\n Asked about the cost for the State, he said it would depend on how long the reduction remains in place. He said he did not have numbers to hand but the sum involved would be pro rata of what had already been done. The Independent TD said it was one of largest fiscal interventions in any EU member state in response to the crisis. <\/p>\n He said the initial introduction was not a \u201ckneejerk reaction\u201d to fuel protests in April, saying he and Minister Darragh O\u2019Brien had been having discussions about supports long before the protests began. <\/p>\n