Diesel tax rise highest in Western Europe

Monday, March 8th, 2010

Haulage operators have been advised that the government’s tax take on diesel has risen nearly three times more than the average for Western Europe in the last 15 months. This is according to an analysis of pump prices and tax changes in 10 western European countries.

Ireland’s haulage operators have witnessed the proportion of fuel cost that is tax, increase by 8.33%, well above the 2.89% average for the countries surveyed.

In five of those countries, the tax-take is lower now than in November 2008, reflecting the collapse in the European wholesale price of diesel. It is a saving that has been denied to Irish, UK, Dutch, Belgian and Spanish drivers.

“The cost of diesel has actually fallen 10 per cent or so since October / November 2008,” says  the Automobile Association’s Director of Policy Conor Faughnan. “You would never notice it because of the tax hikes, and the customer’s price has only fallen about 3 cents per litre (from €1.18 to €1.15) in that time.”

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