Northern Ireland

Fuel tax cut makes little difference in Co Donegal

At Nicholl's petrol station on Derry's Strand Road, petrol was cheaper than in Co Donegal although diesel remained more expensive
At Nicholl's petrol station on Derry's Strand Road, petrol was cheaper than in Co Donegal although diesel remained more expensive At Nicholl's petrol station on Derry's Strand Road, petrol was cheaper than in Co Donegal although diesel remained more expensive

ANTICIPATED cross-border queues to take advantage of lower fuel prices in Co Donegal failed to materialise yesterday as Irish government tax cuts were quickly eaten up by rising costs.

On Wednesday, the Irish government voted to cut tax on fuel to help drivers cope with the unprecedented rise in motoring costs caused by Russia’s invasion of Ukraine.

The price of diesel was reduced by 15 cents per litre while petrol was cut by 20 cents per litre.

It had been anticipated the move would lead to northern motorists flocking south to take advantage of the lower rates.

However, petrol station owners in Co Donegal reported little if any increase in business.

With currency exchange rate differences, petrol remained cheaper in Northern Ireland by up to 1.5 pence per litre while diesel remained substantially less south of the border by, on average, more than nine pence per litre.

In one station in Muff, Co Donegal, diesel was £1.65.8p while just a few miles north on Derry’s Strand Road, it was priced at £1.74.9p per litre.

Petrol in the northern filling station was £12.64.9p against £1.66.6p in Donegal.

In Bridgend, close to Derry, a spokeswoman for the local Texaco station said staff had noticed a “very slight” increase, while staff at another station at Muff said they were not surprised that the Irish government tax change had made little if any difference.

Fuel costs were also raised by Donegal Sinn Féin TD, Pearse Doherty, who said despite the cut in tax on petrol and diesel, fuel costs were higher yesterday that earlier in the week.

He told Dáil Éireann: "The price in most filling stations this morning is more than what they were on Tuesday morning. The reduction has been immediately eroded and that is the likely trajectory."