A gradual reversal in the excise cuts on petrol and diesel is set to be discussed by Government party leaders on Monday night.
Tánaiste and Minister for Finance Simon Harris pledged there would be no immediate cliff edge to the cuts introduced after the major fuel protests in April, which were initially set to run until the end of July.
But he said that the falling price of oil internationally cannot be ignored.
This echoed comments by Taoiseach Micheál Martin yesterday, who said the matter would be kept under review.
Sinn Féin’s Spokesperson on Finance Pearse Doherty told the Dáil this week that petrol would rise by 27 cent per litre and diesel by 32 cent a litre if the reductions were abolished at the beginning of August.
It is understood that Government is working on a timeline that would see the excise reductions gradually phased out.
This would possibly happen over two or three dates, which might be announced after next week’s Cabinet meeting, although the matter is not formally on the agenda yet.
Government figures believe this approach would give people certainty, and it would also afford some “wiggle room” if events deteriorated internationally again.
Although last April’s fuel protests caused upheaval, there is a view in Government that people can now see that fuel prices are falling at the pumps.
Mr Doherty said in the Dáil today that people were aghast at the suggestion that fuel prices could rise.
He asked the minister whether he would rule out that diesel would go up by 32 cent on August first.
Mr Harris said it was necessary to leave the decision for “the coming days” because the situation is very fluid and volatile.
But he added: “I don’t believe there will be some sort of cliff edge where everything will return to where it was before the package.
“We will have to think this through and see what is an appropriate and proportionate response.”
Mr Harris also sad that he could not ignore that the rice of oil is falling, the Strait of Hormuz is open and the price of diesel is below the price of petrol.
“The situation is different factually to when we brought in the original package.”
