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HOUSEHOLDS COULD RECEIVE an additional three weeks payment of the fuel allowance while the VAT on gas and electricity could be temporarily cut from 13.5% to 9% as part of a package of measures to help address the rising cost of living.
The three coalition leaders met with the Minister for Public Expenditure Michael McGrath and Minister for Finance Paschal Donohoe this evening to finalise measures, which sources said included additional payments of the fuel allowance.
Tánaiste Leo Varadkar last week played down hopes for another major Government intervention, stating there will be no “big bazooka measure”, however he added that “nothing is off the table”.
The Public Service Obligation (PSO) levy on energy bills is expected to be scrapped as part of Government measures aimed at addressing inflation.
The PSO is charged to all electricity customers in Ireland and all energy suppliers are required to collect this levy from customers through bills.
The PSO levy is currently €4.30 excluding VAT per month which equates to €58.57 per year inclusive of VAT.
It is also expected that mandatory time-of-day-pricing for electricity will be rolled out to encourage people to change their energy use to periods where costs are usually cheaper.
There is particular focus to do something on home heating oil, as the price has soared in recent months.
Sources have also said that Government has lowered excise to the lowest they can, but added that it might be able to do a bit more when it comes to VAT on fuels.
Government had been lobbying the EU to allow Ireland reduce its VAT rate without facing penalties down the road when the temporary reduction would no longer be needed.
One measure that didn’t make it into February’s cost saving package of measures is increasing the tax-free bonus amount an employer can give an employee from €500 to €1,000 annually.
It is understood that measure is back on the table and being discussed this evening, with sources indicating that Donohoe is minded to sign off on it this time around.
How the Government plans to offset the carbon tax increase through targeted measures will also be on the agenda of today’s meeting.
Any measures that are agreed this evening will be brought to Cabinet on Wednesday.
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30 years of chickens coming home to roost. Nobody in FF or FG thought beyond their election cycle. No investment in home grown energy.
@Mogh Roith: and what about the various partnwrs over the years, Labour, the PDs, the Greens and so on, or the independant TDs…. no one thought of it. But guess what, neither did SF, so don’t be pinning your hopes on them, either!
@Joe_X: SF were never in government. Deep breaths now, there there, good lad.
@Mogh Roith: Wind farms in many places. Is that not ‘home grown energy’?
Ah yeah, love it, a one time tax free bonus of €1000 up from €500, now just need my employer to give us a bonus…
@DBX: yep.. as usual the middle earners get SFA
@Terry Tibbs: and the self employed
@Terry Tibbs: if you’re a middle earner you’ll be paying income tax at the higher rate, so increasing the threshold from 500 to 1,000 does benefit you
@Stephen Kearon: See original post. Majority of employees dont get any bonus at all.
@Geoff Bateman: we still have our stack of cash!!!
@Stephen Kearon: middle income earners not necessarily paying high rate tax. That 1000 will only be good if your boss will give you a bonus in the first plaxe
Just seen the updated articke on VAT. Don’t know why they are cutting the VAT as all the will happen is the suppliers will increase their prices again and we will be back at square one, just like the fuel stations and the excise duty cuts a few weeks back. They need to introduce a cap on the price of these and out a stop to this profiteering.
@Joe_X: How can they cap it though? If the cost of fuel stations buying fuel exceeds the cost fuel stations can sell it for, what do you think happens next?
@Gavin Conran: But if they don’t find a way to do so, we will be back at square one like when the petrol stations raised the prices to drop them. There is straight forward profiteering going on. That is why it needs capping.
@Joe_X: There needs to be an EU-wide cap on road fuels at €1.50 per litre and an EU wide cap on electricity unit prices of 20c.
It’s time to protect the citizens of Europe – but it’s rarely the EU do anything for the citizen. Banks however – they protect them at the drop of a hat.
@LaoisWeather: So if the cost of production exceeds those caps who pays? The suppliers would go bust unless subsidised
@Gavin Conran: Like all the gas suppliers who went out of business in the UK
@Mickety Dee: The EU collectively buys to drive down price.
The Greens need a propsal of some sort to cap the increases being done by the electrical suppliers in this country, rather than punish those of us driving ICEs and throwing out smart remarks about the length of our showers. Read a report lately how online interest in EVs has increased. This was due to the price being much lower to charge the EV than fill an ICE to get an equivalent distance. However, with the increase in unit prices for electricity, that one incentive to go EV is being eroded away, and it will not be long before the finacial cons to stay ICE will not outweigh the pros to go EV
@Joe_X: Except electric cars are much cheaper to run anyway based on energy efficiency. Also, the cost differential has not changed. The increase in the price of oil and gas is driving the increase in electricity. At least if I bought solar panels I could make my own electricity for my car. I don’t ever plan to start refining oil.
@Joe_X: Exactly, was just talking about that the other day. As the demand for electricity increases, so will the cost as our network will need to be expanded and upgraded. Will the cost of diesel go back down when the demand reduces? Will be interesting to see the real world savings after switching to EV.
@Mickey Finn: Add to this also that EVs tend to have far lower maintenance costs than ICE vehicles. Even though EV purchase price is still higher relative to ICE vehicles (which can be moderated over years with fairly cheap loans for those who cannot afford purchase outright), their total cost of ownership over 10 years tend to be lower.
https://www.seai.ie/technologies/electric-vehicles/compare-and-calculate/comparison-results/?vehicle1=8164927&vehicle2=4210469
@Mickey Finn: Fair point, however most people use their cars during the day then charge at night. So solar won’t be much use if you are at work all day
@Mickey Finn: A valid point concerning the use of PV, especially if your not travelling far. However, how many would actually invest in the PV panels, as they are now another cost, and limited to home. Also the range being limited as it is in EVs, many people, will be needing top ups away from home. When people will be looking at the cost analysis of EV vs ICE, distance per euro will decide it.
@Urban Living Dublin: As to the maintenence costs the only differences in those are basically related to the engine. All the other maintenance items still need carrying out. The engine maintenance is really only a small part of the cost of an ICE powered car.
@Joe_X: I’m not so sure, some studies show EV maintenance costs to be 40% lower compared to ICEs, but I’m no expert in the area.
I haven’t mentioned the differences in tax and insurance, which can be substantial and will only increase.
@Urban Living Dublin: which would be about right in terms of cars of comparable ages. As I said, the engine would be the only main different bit, but in terms of the maintenance that is basically oil and filters. Other items such as tyres, brakes and fluids would be common. Some electric cars even require the use of coolants and rhe associated radiators. I know I’m probably oversimplyfying it and not taking everything into account. Other than that, one of the biggest costs of any maintenance these days is main dealer involvment as they try cutting out the home mechanic and local non-dealer garages, and I cannot see that changing, regardless of the drive source used.
@Joe_X: apart from …Clutch, timing belt, Starter motor, gearbox, emissions, just some of the things you overlooked that will never need attention. No fluid changes, no cooling system apart from the battery coolant. Also brake pads and discs last 3 times as long on Evs, it’s gas (pardon the pun) that you will come on here and go to great lengths to talk about something you haven’t a clue about.
@Alan Biddulph: Interesting point about the brake pads. Would this be due to regenerative breaking in EVs?
@Alan Biddulph: you’d be suprised….I’m a mechanic, actually started out on cars before I moved to aircraft. I probably have a better clue than most.
@Alan Biddulph: BTW you are obviously replying to my first comment to URBAN, and not my last.
@Joe_X: No way a mechanic would have come out with your original statement about maintenance costs being comparable. Ev’s need almost zero maintenance in the first 100k kms, Nissan charge €100 for a dealer service if you want to drop it in for a once over in between.
@Urban Living Dublin: Yea the regen does most of the braking, you tend to use the brakes much later when the car is nearly stopped.
@Alan Biddulph: All cars need maintenance. Whoever told you otherwise lied. Sorry about that. But it’s the truth. Also your comnent on Regen braking, while correct in theory, is wrong too. The regen brakes do not slow the car down quick enough, and people still hop on the brakes as a result, and the pads end up having to be changed more often than cars that don’t use regen brakes.
@Alan Biddulph: btw I think you also misread my comment using the term comparable. Read it again, I was saying I agreed with his figure of 40% in cars of comparable ages. But 40% is not actually that much, now is it?
@Joe_X: Sorry Joe you are uninformed and it depends on whether the drive motor is synchronous or permanent magnet. Use of actual disk brakes is minimal and I’m aware directly of people with 192,000km on their original brake pads and still going strong. I’m driving an EV now 3 years this month and on servicing have bought a set of tyres at 42k and a set of wiper blades. Does screen wash count as servicing?
@Gavin Tobin: pumping your tyres counts as servicing and maintenance as far as I’m concerned, never mind the window washer. I know a couple EV and hybrid drivers who need the brake pads changed fairly regularly. But as I said regen braking does not slow the car fast enough, which is why people hop on the brakes. I know I sound anti-EV but I’m actually not. It is the way of the future as far as I can see, but unless something is done, the main incentive to go EV will be eroded away, which is the price of electricity vs Fuel. As to maintenence, sorry but moving parts wear, simple as. They may not have an engine but they still have tyres, brakes, lights etc all needs maintenence. The type of drive does not affect the wear on tyres and brakes, thats driving style and road conditions.
The Carbon offset of owning a 10 year old ICE car compared to buying a new EV is negligible. The issue really lies with buying new cars. If one were to upkeep an older car it costs less and will have the same carbon offset of the manufacture of an electric car over a longer period. The manufacture of all components of an EV is huge in carbon terms rather than the upkeep of an already built ICE car
@Declan Edward: The EV second hand market is a growing sector, even in Ireland.
@Urban Living Dublin: That just shows that those who can afford it are buying new EVs and then buying another one a few years later. Hardly good for the environment in fairness, just additional unnecessary consumption
@Declan Edward: iv a diesel 09 car in great condition. Cost me 3k last year. If I was to buy a EV id have to pay about 10k and it would only go about 120km before it needs a 3 hour charge. Its just not practical for most.
@Declan Edward: Nonsense and easily disprove. It actually depends on the mileage you do and hence the petrol and diesel you burn. Driving daily in a 10 year old vehicle from Carlow to Dublin every day would thrash any offset of driving the old vehicle. Then there are the health aspects of inhaling toxic refuelling fumes and spewing out toxic exhaust gasses and PMs. Unless you only use your 10 year old ICE to go to mass of a Sunday scrap it.
@Gavin Tobin: Agreed it would depend on the mileage being done but the example you give is hardly average usage. The CCPC says average mileage per year is about 10k in which case Declan’s argument makes a lot of sense.
Compensate people to cope with high fuel prices with some alternative benefit that eliminates the financial impact rather than reduce the prices, otherwise none of the change required to save the planet will happen.
@Mickey Finn: we are too small to make a difference when it comes to climate change especially when much larger countries, and biggest culprits, China for example, couldn’t care less.
@cars: so why have a carbon tax?
@Declan Edward: because we’re in the EU.
@cars: Emissions per capita is what matters and is most fair. In that respect, we’re doing worse than China, although gradually improving. Even China’s per capita emissions appear to be plateauing, which is good news.
The bigger question is, can change happen fast enough for the world to avoid climate catastrophe?
@Declan Edward: Because carbon tax forms part of our commitments to a just transition to carbon neutral society. If we fall at this fairly minor hurdle, what hope have we?
@Mickey Finn: It’s a joke. They tax us just to give it back as a subsidy to use more power. Give it to those who need it but don’t make people think energy is cheaper than it really is and encourage usage
@Urban Living Dublin: It’s not a “just” transition – so the greens can shove that soundbite. The carbon taxes are increasing since they were introduced in 2009 and we have not got anything in the ways of reliable alternative energy sources, because the wind turbines are not reliable much of the time.
All carbon taxes should be scrapped until viable, affordable alternatives are in place, until then – go swing for your stúpíd tax.
@cars: So we shouldn’t do our bit and try? No individual person makes any percievable difference to any global problem (poverty, hunger, pollution, etc). Does that mean we shouldn’t bother donating to charities like St Vincent de Paul & Trocaire? People will starve anyway. Should we just dump our domestic waste in hedges? Someone else will anyway.
@Urban Living Dublin: nonsense. It’s absolute numbers that count in the end to global warming.
Mandatory energy prices.
Mandatory alcohol prices.
Temporary universal social charge never been lifted.
Energy levies.
Insurance levies.
Tax tax and more tax
Selling off land to shady developers.
Healthcare in bits.
Housing in bits.
Sham politics at its absolute finest.
@Trevor W: And people are looking for fuel subsidies which means more tax on the other end again. The government take a euro in tax and give you 80c back
The standing charge should be dropped. This would save the customers hundreds of euro per year. Or, get rid of USC. After all, it was supposed to be temporary.
A zero (or very low) rate of vat should be introduced on all materials to retrofit homes such as insulation and solar systems.
@JG: Sensible proposal with a return that keeps on giving.
@Gavin Tobin: Except the return doesn’t keep on giving, for solar at least in my experience. Insulation is a must, but solar has cost me more on maintenance to far outweigh any savings on heating water. Maybe just a bad experience, but I installed a system from a very well reviewed contractor and didn’t see a return, the opposite in fact. It’s switched off now because it costs less to heat the water with oil than to call out the plumber twice a year to keep it running
@HectorPickaxe: Think that more a problem with solar to water. Solar PV is relatively maintenance free and you can juice up your car with it.
Maybe the Government could give those of us that do work and pay our taxes the Fuel Allowance for a period of time. We struggle too !
it’s so ridiculous what there at.. next election vote the other bunch in and see what happens.the current bunch need to be in opposition for a few years.
@Terry Tibbs: great idea. I’m sure the army council have fantastic ideas on how to sort out a problem with fuel caused by a war in another country.
@Dave Connolly: Would be willing to give SF a chance. I’m sure you will remember when last in opposition FF kept Varadkar and FG in power with a confidence and supply agreement. Bit of a contradiction don’t you think. Remember the mantra the used when FFG formed a government…Time for a change. Ironic when you consider they have been in government since the foundation of this state.
@Dave Connolly: Considering a petrol-bomb is now reaching €28 a pop, they’d understand the implications better than you’d think.
I’m heading to the hardware to get fork handles
@Noel Donohue: and some pumps
@John Moloney: I’ve a better idea…. instead of trying to deflect attention away from the cause of the current increase in prices, go tell your buddy Putin to get out of the Ukraine which is what has led to the current hikes.
@Joe_X: locking down economy couldn’t possibly cause inflation
@John Moloney: Except the country has been pretty open for months with little increase in the price of things until the biggest increases which have been in the last 6 weeks, starting with a certain friend of yours invading his neighbour!. Only place that has to do with lockdowns os in your own head.
@Joe_X: I change my opinion, lockdowns are free and don’t cost money.
@John Moloney: well if you want to act your age, fair enough, just keep quiet while the adults are discussung big people things. Ok?
@Joe_X: Prices of groceries started rising at an alarming rate 1st week of January. As for hikes in electricity, gas etc there have been three increases in the last 12 months. Fuel prices up and down since early January than shooting up again day before the government decrease. The war in Ukraine cannot be held fully responsible its just price gouging and rip of Ireland at its very best.
@Franny Ando: only by a few cents here and there each time Franny. My own ESB bill increased only by about 10 -15% all throughout the pandemic. Everything increased at the normal rate of inflation up until the Russians invaded the Ukraine, then they really took off. In the 6 weeks since, everything has gone crazy price wise.Had it not been government intervention on the fuel pump prices, pitiful as it was, we would be looking at prices of €2.20 or more. The Electric suppliers are talking increases of 30%. I’m not denying that prices went up during the pandemic, but it is not the reason for the prices the way they are now like John is trying to convince people of. He is trying to blame the pandemic so much , that he is deflecting from the real cause.
@Joe_X: Get up the garden would ya – builders materials prices soared last year, fuel prices soared from around €1.30 per litre to €1.65 a litre long before the war. There were dozens of electricity price increases last year. MUP introduced, Road tolls went up, etc…
While the war has caused further price increases, they were rallying ahead well before a Russian tank crossed the Ukrainian border.
Maybe the Government could give those of us that do work the fuel allowance for a period of time. We struggle too!
Question that should be asked has there been a drop in oil/gas output since the war in Ukraine started and the answer is no , in fact output of gas/oil increased so why the gas/oil cost increased so rapidly. who is making these massive profits. Place a windfall tax on them and put a ceiling on the price paid internationally for all oil and gas control the price . It is too vital a commodity for the world economy to have it so volatile
If the government gave 20c off a litre of petrol & diesel what will they give off electricity for EV drivers?
@Gavin Tobin: nothing hopefully..
@Charmaine ☘ Irish: Why? Petrol & particularly diesel exhaust gasses causing asthma, depression, cancer, cardiovascular disease & parkinsons?
Do you think only disease causing substances should be subsidised by taxpayers?
@Charmaine ☘ Irish: Why hopefully?
@Gavin Tobin: No doubt cobalt mining causes its fair share of diseases. Kills a lot of children as well.
@The Bolt: Great I look forward to you forgoing your mobile phone, tablet and laptop as a result. Historically the biggest use of cobalt was in the desulphurisation of petrol, diesel and kerosene. Did you give a shiite about children down mines then? Did you F….
@Gavin Tobin: I don’t blow on about how great my phone is to saving the planet, unlike yourself in relation to your electric vehicles. I’ll stick to my diesel thanks very much.
@Gavin Tobin: Ah here’s Gavin on to virtue how he got a €5k grant for purchasing his new EV to look down his nose at the rest of us. Ever feel guilty going with the cap out looking for that €5k subsidy?
@The Bolt: Diesel poisons you and poisons fellow citizens driving increases in asthma, depression, cancer, cardiovascular disease and Parkinson’s to name but a few illnesses. Well done you, take a bow.
@Gavin Tobin: Cobalt in your electric vehicle causes numerous health problems, and tears the planet apart. Plus did I say its mining kills children. I’ll stick to my diesel. Maybe that’s why electric vehicles are so quiet. Gives ya space to listen to your conscience.
@The Bolt: Diesel desulphurised to 10ppm using cobalt. Did you miss that detail? So on top of the diesel SOx, NOx & PM health issues diesel causes cobalt health issues too and you say it kills kids mining it but you don’t really care about them, do you?
Many EVs BTW cobalt free including all of the Tesla M3 SR+ currently sold in Ireland so what’s your next uninformed moan?
@LaoisWeather: No €5k grant for EVs for business and never was. LoL
60 euro, that’s not going to help much.
Cue the usual SF war cry…..government not doing anything to not going far enough!! Always the glass half empty and total negativity.
@Paul Shepherd: Could you please clarify what steps and measures Irish government has taken to date to ease the pain of rising living cost in the state. Thank you.
@Paul Shepherd: diesel is €2.20 a litre in NI at the moment compared to €1.90 in the South. Not sure what SF are doing up there for their hard pressed voters but it aint working.
@GrumpyAulFella: I saw figures recently where you would need about €3800 per month in Belfast to maintain the same standard of life on €5300 in Dublin if you were renting.
@David Corrigan: Dublin and Belfast are chalk and cheese. You might as well be comparing Kells to Kilkenny.
@GrumpyAulFella: “diesel is €2.20 a litre in NI at the moment compared to €1.90 in the South.”
We are talking about and comparing the cost of living at both sides of the border, right?
@David Corrigan: no the thread is on the price of fuel DC. If we were talking about the cost of living then we’d be comparing things like welfare payments North v South or average salary North v South or state pension North v South. The topic here is price controls on fuel. I’m not sure what SF have been doing to control same in NI as with a lower cost of living, like you say, why are they paying 30c+ more for a litre of fuel than we are. Surely SF should have tackled this before now. They would be out on their ear in the South by now.
@GrumpyAulFella: From the media.
“In Northern Ireland, as in the rest of the UK, there is no regulatory body when it comes to fuel pricing.
Simply put, it means retailers can charge whatever they like — and there’s plenty of evidence they’re doing just that.”
The DUP and SF can do nothing about that.
@David Corrigan: same as here. Fuel duty adds 58p to a litre in NI with another 20% VAT on top. Why aren’t SF all over the Chancellor to slash fuel duty and VAT as the govt are proactively doing here in the South?
@GrumpyAulFella: Maybe they are? It’s impossible to influence change from the opposition benches in the Republic and as a bit part player in the North. When they are in government in Ireland in the near future we will see what they are made of.
@David Corrigan: they are the largest party in NI at the moment and Conor Murohy is the Minister for Finance. He holds the purse strings when it comes to fuel duty and VAT. This paralysis and inaction doesn’t bode well if they ever enter government in the South. They won’t get that understanding from the people here especially if they are in a minority or slim majority coalition govt. Sounds like they’re hurling from the ditch yet again.
Time of day pricing should be fun. “Ma, what time is dinner, I’m bleed’in starv’in”. “After 11 tonight, Shakira luv. It’s cheaper to use the deep fat fryer then”
That’s a fecking joke!
I think I will give up my job this is a great country you get everything free. The middle class pay for mostly everything and get nothing back
I think I will give up my job this is a great country you get everything free. The middle class pay for mostly everything and get nothing back
I think I will give up my job this is a great country you get everything free. The middle class pay for mostly everything and get nothing back
have your say