'Fuel tourism' to NI could follow Irish duty move

Petrol is to increase by four cent per litre while diesel will rise by three cent per litre on Monday

The Irish government's decision to restore excise duty on fuel will encourage people to go to Northern Ireland to purchase diesel and petrol, according to the Irish Road Haulage Association (IRHA).

Petrol increased by four cent per litre while diesel was raised by three cent per litre on Monday.

The decision was made to restore the excise duty in the Irish government's budget last October.

This followed a temporary cut in 2022.

Speaking on RTÉ's Morning Ireland, the IRHA president Ger Hyland said with fuel being "on par or cheaper" in Northern Ireland the change would encourage "fuel tourism" and would have an effect on the Irish economy.

Mr Hyland added that hauliers operated in a "low margin" industry and will have to pass on the increased cost of fuel to customers.

"We use approximately 14 million litres of fuel a week here in Ireland. We're currently paying five taxes on that, there's €7.84m (£6.7m) a week going into the government's coffers from our industry, from the transport sector.

"With the increase that's being put back on it today, and in August, that's going to rise to €8.68m (£7.42m). It's huge in the scheme of things," Mr Hyland said.

In its latest fuel price checker, the Northern Ireland Consumer Council found petrol averaged 140p per litre and diesel was 148.2p per litre on 28 March.

'Distinct disadvantage'

Mr Hyland added that the increase to fuel costs will also make it harder for Irish business to compete against those based in mainland Europe.

"We, as a country, are on the periphery of Europe. The cost of getting our goods to and from market has never been as high. We're at a distinct disadvantage to mainland Europe," Mr Hyland said.

"Our tolls have gone up twice already this year, the government's coffers were never as full, we're facing down the barrel of an election this year and we would've thought that the government would've kicked this can down the road."