IBEC calls on Government to reduce fuel excise 14-09-05

IBEC calls on government to reduce fuel excise

Employers’ group IBEC has asked the Government to consider reducing the amount of excise duty payable on fuel.
The body has warned that unless prices begin to stabilise, jobs could be lost.

IBEC’s chief economist David Croughan said the increase in oil costs was “a very tight squeeze on already tight margins.”
He said that it didn’t look as though this would be rectified in the near future and that cutting excise costs could help transport expenses.
“The government is getting something of a windfall gain from increases at the pumps. It may well be we’ll have to get used to higher oil prices for the foreseeable future. It means that manufacturers will have to trim costs because energy costs can’t be easily absorbed,” he said.

The IRHA said that petrol prices rose between five and eight cents over the weekend. Jimmy Quinn, a spokesperson for the organisation, said that Christmas trade could be affected unless something was done to stop the increase.
“We’re in an era of high energy costs and I can’t see any significant change in the future. Some hauliers are charging a fuel surcharge but some people are refusing to pay; it’s creating a very difficult atmosphere.
“People are trying to avoid radical action because it sends out a very bad signal and we won’t want to get a bad name,” he said.