Irish haulage operators could face another 14-cent increase in the price of diesel before Christmas under the Government’s current timetable for restoring fuel taxes.

Two increases of seven cents per litre are scheduled for 1 November and 1 December, potentially placing further pressure on transport businesses already struggling with exceptionally high fuel costs.

The increases form part of the phased restoration of temporary reductions in excise duty and the National Oil Reserves Agency levy introduced during the fuel-price crisis earlier this year.

In June, the Government planned to restore 32 cents per litre to diesel through four separate increases between September and December. However, the increases scheduled for September and October were subsequently postponed after fuel prices began rising again.

No equivalent guarantee has yet been given that the November and December increases will also be suspended.

That leaves hauliers facing the possibility of a seven-cent increase on 1 November, followed by another seven cents on 1 December—just as operators enter one of the busiest periods of the year.

Thousands added to fleet costs

For a haulage company purchasing 100,000 litres of diesel, a 14-cent increase would add €14,000 to its fuel bill.

An operator using 500,000 litres would face an additional cost of €70,000 if the full increase were passed through at the pump.

Those figures come before considering any further movement in wholesale oil prices, refinery costs or retail margins.

Diesel has already reached approximately €2.10 per litre at some Irish filling stations. The Irish Road Haulage Association has warned that fuel prices are unlikely to fall sufficiently before the Government begins unwinding the remaining supports.

The association maintains that operators cannot absorb repeated increases indefinitely. Fuel represents one of the largest costs facing a haulage business, and sudden price movements can rapidly wipe out the narrow margins on which many transport contracts are based.

Christmas supply-chain pressure

The timing is particularly difficult for the haulage sector.

November and December are among the busiest months for freight movements as retailers, food distributors and manufacturers prepare for Christmas. Operators require more vehicles, drivers and fuel precisely when the proposed tax increases are scheduled to take effect.

Hauliers will either have to absorb the additional costs or seek higher rates from customers. In many cases, those additional transport costs will ultimately be reflected in the price of food and other goods.

The planned increases could also place smaller family-owned operators under particular pressure. Many do not have the purchasing power, fuel hedging arrangements or contractual fuel surcharges available to larger transport companies.

Government clarification needed

The Government has said that the restoration of fuel taxes will remain under review because of continuing volatility in international energy markets.

However, operators need clarity well before 1 November to price contracts, prepare budgets and plan vehicle movements for the Christmas period.

The Government must now confirm whether it intends to proceed with both seven-cent increases or extend the current relief into 2027.

Allowing diesel to rise by another 14 cents before Christmas would increase costs throughout the Irish supply chain and weaken the competitiveness of domestic transport companies.

For hauliers, postponing the September and October increases provided temporary breathing space. Unless the remaining timetable is changed, however, the industry could still face a substantial fuel-price shock before the end of the year.