Forecourts feel pinch over north-south price differences
Forecourt owners in the Republic say the almost 25% difference in fuel prices north and south of the border is damaging their businesses.
There are reports that several petrol stations have closed as customers travel to Northern Ireland for cheaper fuel.
The disparity in prices was the reason that a Texaco filling station in Muff, Co Donegal, which straddles the border, was forced to close.
It once employed 50 people and the owner, Colm McKenna, had been in business for 25 years.
"The difference in prices north and south meant that it was no longer sustainable for us to continue in business," Mr McKenna said.
"We were in business here in Muff since 1999 and when the excise duty costs were better for us in the south, it was viable, but the large difference excise duty and the carbon taxes now meant we had to close, because we lost €100,000 last year," he said.
"We had no choice but to close, and it's a shame for the staff, because there aren't many jobs here," Mr McKenna added.
The increased cost is down to higher excise duty tax and carbon tax in the south, according to the Chief Executive of Fuels for Ireland, a national lobby group for the liquid fuel sect
"When the war in Ukraine broke out, the Government cut excise duty to help with the cost of living and the British government did likewise. But, the Government here reinstated it again, and this is putting huge strain on our members," Kevin McPartlan said.
"Businesses along the border are really feeling the pinch, indeed several have already closed. We have raised this with the Minister for Finance and we will be lobbying to get excise duty reduced," he added.
The Department of Transport said with regard to the price differential between average retail prices in Northern Ireland, it was important to note that a number of factors affect the final retail price of fuels including energy market dynamics, wholesale pricing, individual retail pricing policy, transport costs, exchange rate fluctuations and taxation.
"It is acknowledged that price differentials in a cross border context can give rise to 'fuel tourism' whereby individuals can legitimately purchase fuel from another territory for their own use," a spokesperson said.
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