MOTORISTS:MOTORISTS FACE a rise in fuel prices today with four cent added to a litre of petrol and two cent to a litre of diesel, pushing prices to an average of €1.40 per litre of petrol and diesel to €1.32 per litre.
The Budget also extended the current car scrappage scheme until July, the rebate on hybrid cars until 2012, and introduced a car pooling scheme for former taoisigh and presidents, while reducing the future maximum engine size within the ministerial fleet to two litres or less.
According to the Automobile Association (AA), the tax increase on petrol pushes prices to a new record high. Eddie O’Brien, chief executive of Topaz, said that even before the Budget increase, 60 per cent of the price of a litre of petrol was going directly to the exchequer. “That will increase further following yesterday’s announcement,”he said.
For commercial vehicle buyers, the Vehicle Registration Tax (VRT) will increase from the current flat rate of €50 to €200 from May 1st next year.
There was, however, welcome news for the motor trade with the extension of the current car scrappage scheme until July next year and the continuation of tax rebates of up to €1,500 on hybrid and flexifuel cars until 2012. Both incentive schemes were due to end on December 31st.
Listen to the Motors podcast - Budget special to hear what it means for motorists and motor sector: irishtimes.com/motors/podcast