Urgent action needed on energy costs - INHFA

THE president of the INHFA (Irish Natura & Hill Farmers Association), Pheilim Molloy, has called on the government to take immediate action on spiralling energy increases.

While increases are impacting every aspect of the economy, rural areas and the farming sector are particularly vulnerable, says Mr. Molloy.

“Over the last two weeks, we have seen white diesel increase by 35c/litre and the State has benefited (through increased VAT) by 8c/litre,” he said. This comes on the back of substantial tax take through excise at 42.57c/litre, Better Energy at 8c/l and carbon tax at almost 19c/l, with this set to increase further in May.

On petrol, Mr. Molloy outlined how 'there has also been dramatic increases close to that on white diesel and while the make-up of the tax take is slightly different to white diesel, the State are even bigger benefactors with a higher excise tax paid'.

For green diesel, he said: “We have seen the largest proportionate increase over the last two weeks, with the State once again benefiting by over 5c/l, through an increased VAT take - all be it at the lower rate.”

“It is,” Mr. Molloy stated, “vital that the State now acts.”

The INHFA are calling for:

· the immediate suspension of the carbon tax

· a reduction in the VAT rate for white diesel and petrol to 13.5%

· the full abolition of VAT for green diesel and all home heating oils

“This would bring current white diesel prices, which are now at €2.10/litre, down to €1.72/litre, with the price of petrol under €1.70/litre and critically green diesel prices down to approximately €1.10/litre,” he explained.

Mr. Molloy cautioned against any move solely confined to excise tax, stating that 'while any move on tax is welcome, moving only on excise will do nothing on the price of green diesel and will definitely not reduce white diesel by 40c/litre as we have proposed'.

He stressed the need for immediate action, 'because unfortunately this crisis is not going away'.