Petrol hikes could lead to job losses in Leitrim, warns local TD

Businesses along the border are set to be hit hard by the re-imposition of higher excise duties on motor fuels, according to Sligo Leitrim TD Marian Harkin.

“On average, petrol is at least 10 cent per litre cheaper in Northern Ireland than the Republic, with diesel an average of 7 cent cheaper per litre. 

“When the price hikes of 4 cent per litre on petrol and 3 cent per litre on diesel come into force on August 1st, we are looking at a price differential of at least 14 cent per litre on petrol and 10 cent per litre on diesel,” Deputy Harkin said

“This means that motorists will cross the border in even greater numbers to buy their fuel and when there, many will also do their weekly shop in Northern Ireland.

“This is an absolutely untenable situation and has been brought about by the fact that the Chancellor of the Exchequer decided not to increase fuel prices in Northern Ireland in 2024, while our Government decided to go ahead with three increases, in May, August and October. 

“This will mean business closures and job losses along the border as forecourts in the Republic will be unable to compete on prices, and the loss of business to supermarkets and smaller shops in the border region will be hugely significant,” Ms Harkin warned.

“This is a zero-sum game for the Revenue Commissioners in the long run, as they will lose significant revenue on fuel sales as well as revenue from businesses in the border region.

I am asking the Minister for Finance to do an analysis on the possible loss of revenue to the State, both in terms of overall lost revenue and likely job losses, because the worst possible outcome would be for the State to lose revenue while businesses along the border close,” Deputy Harkin concluded.