There is rumbling among the chattering classes that there will be an equalization of duties between diesel and petrol in the forthcoming budget. This will be the most severely inflationary event IF it happens. Diesel is the product of transport on all levels and the effect on every day goods will be enormous. Bus fares,Train fares, taxi’s etc etc . will all rise!
The knock on effect will be wage demand, strikes, closure of businesses and a slowing down of the economy . After the struggles of the Pandemic is this what is needed in Ireland??
The reasons that will most likely be proferred for this increase in the price of diesel will be Carbon reduction…It would be wonderful to see completely open and transparent Cost Benefit Analysis of what is going on. There could well be a case for Paying the fines versus running down the race track of forcing people onto electric vehicles which provide zero REVENUE to central government to date .
Prices have risen already quite significantly across the international supply chain and we have seen the effect at the pumps. Diesel is already up over 16% in the past 15 months and petrol similarly. Electricty has increased in price along the same lines . So why crucify the people with enormous tax hikes on fuels when they are already suffering the inflationary effect from international suppliers.
This would not be good governance .