Independent TD for Offaly Carol Nolan has called on the government to immediately implement reductions in the rate of mineral oil tax (MOT) applied to petrol and diesel.

The Offaly TD's comments come as energy prices are expected to be impacted due to the US-Israel conflict with Iran.

Shipping through the Strait of Hormuz, which is located between Iran and Oman, has come to a standstill after it was closed by Iran.

The shipping route normally handles around one-fifth of the world's oil trade. The closure of the key trade route has resulted in a spike in global oil prices.

Tax

In Ireland, MOT is an excise duty applied to petrol, diesel, kerosene, and marked gas oil (green diesel).

Tánaiste and Minister for Finance Simon Harris previously confirmed to Deputy Nolan that reductions for MOT were introduced in March 2022, in direct response to the global energy crisis.

These temporary reductions were extended until August 2024 with a gradual restoration of rates taking place on dates between June 1, 2023 and August 1, 2024.

It was also confirmed to Deputy Nolan through a parliamentary question that the cumulative revenue from MOT on petrol and auto-diesel from 2022 to 2025 is €9.406 billion.

"We know that the carbon tax element of the MOT is a grossly unfair form of taxation that is needlessly driving up costs and that these carbon tax increases are due to continue until 2030.

"If emergency legislation is needed to reverse or suspend these increases, then it should be introduced without delay.

"Government may not be able to directly do anything about how long the Iranian and Middle Eastern conflict will go on, but it can certainly do something to assist people in the energy costs area and it should move swiftly do so," Deputy Nolan said.