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Richard O'Donoghue: Cap Fuel Tax to Protect Families

Richard O'Donoghue: Cap Fuel Tax to Protect Families

Richard O'Donoghue argues that current fuel taxation-effectively one euro of tax for every euro of fuel cost-is driving up prices and harming households. He calls for a cap on fuel tax so families pay only the increased cost of fuel, not additional taxation, until EV infrastructure is in place.

Key claim: taxation, not fuel, is the problem


Richard O'Donoghue tells the Dail that for every euro a litre of fuel costs the state takes a euro in tax. He warns that this level of taxation feeds a circular economy of rising prices: transport costs push up food and material prices and squeeze household budgets.

Household impact and infrastructure constraints


O'Donoghue points to heavy reliance on fossil-fuel vehicles - roughly 80 percent of vehicles - and argues that many people cannot afford to switch to electric vehicles because the charging infrastructure is not yet available. He stresses that asking households to buy EVs before infrastructure is ready is unrealistic and unjust.

Policy demand and consequences


He proposes a simple remedy: cap the taxation on fuel so that when the base price rises citizens cover the raw increase but are not taxed on top of it. O'Donoghue frames the cap as a measure to ease cost-of-living pressures now and to prevent avoidable strain on families while infrastructure develops.

Political context and stakes


Speaking in a critical tone toward the government and supporting independents, O'Donoghue frames the issue as immediate and practical: reduce the tax burden on fuel to prevent broader price increases and to protect livelihoods until alternatives are widely accessible.

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Transcript
The reason we're here today is this government, backed up by a couple of independents who keep voting with you, is for every euro that it costs for a litre of fuel, this government take a euro in tax. What does that do? Circular economy. Everyone that is depending on fossil fuel vehicles, which is about 80% of the vehicles in this country at the moment, it puts up the price of food for everyone. It puts up the price of material, it puts up the price of transport. So the only realistic thing to do is cap the taxation on fuel, and if there is an increase on fuel costs, we'll pay the increased costs, but we won't be taxing it. It's not the cost of fuel that's the problem at the moment, it's the cost of tax. When it goes up, everything goes up. The infrastructure is not here at the moment. People can't afford to go to work at the moment, people want them to buy EVs. They can't afford to put food on the table. When that infrastructure is here, yes we'll welcome it. It's not here today. So cap the costs on fuel, and then we'll pay the increased costs on it, and save lives.