Irish fuel duty and hospitality taxes to increase

VAT rate for tourism and hospitality will increase from 9% to 13.5%

Fuel and hospitality taxes in the Republic of Ireland will increase from midnight as temporary reductions expire.

Fuel duties had been cut in March 2022 in response to a spike in prices after Russia's invasion of Ukraine.

Petrol excise rates will rise by 7 cent per litre while diesel rates will increase by 5 cent.

The VAT rate for tourism, hospitality and some other service businesses will also increase from 9% to 13.5%.

The rate had been cut in November 2020 in response to the pandemic.

It was initially due to run until the end of December 2021 but was extended on two further occasions.

Business groups had called for the lower rate to be extended again saying an increase would add to pressure on firms which are already struggling with the impacts of inflation.

The finance minister has not ruled out postponing a further rise in fuel duty

Government ministers ruled this out, saying the reduced rate could no longer be justified.

However, the finance minister has not ruled out postponing a further rise in fuel duty which is due before the end of the year.

Michael McGrath said the plan to increase petrol duty by a future 8 cent per litre and diesel by 6 cent per litre would be kept under review.

Road fuel prices in the Republic of Ireland have an impact on the market in Northern Ireland.

A study by the UK's competition watchdog published earlier this year found that petrol and diesel in Northern Ireland is cheaper than in other parts of the UK because of competition from filling stations across the border.