Heydon provides 'detailed analysis' to cabinet of agri fuel costs

Minister for Agriculture, Food and the Marine, Martin Heydon
Minister for Agriculture, Food and the Marine, Martin Heydon

Minister for Agriculture, Food and the Marine Martin Heydon is said to have provided a "detailed analysis" of the impact of the conflict in the Middle East on costs in the agriculture sector.

This comes as the government finalises a set of measures to offset the increasing cost of fuel resulting from the war that has broken out involving the US, Israel and Iran.

It is understood these measures will be confirmed on Tuesday (March 24) to coincide with a meeting of cabinet that day.

There have been calls from across the agri-sector for any measures announced by the government to include a reduction in the cost of agricultural (green) diesel.

A spokesperson for Minister Heydon told Agriland that the minister "has made a strong case to his cabinet colleagues concerning the impact the conflict in the Middle East is having on agriculture and farmers".

The spokesperson added that the minister has "provided a detailed analysis of these impacts on the cost of production".

The exact measures the government is set to introduce remain to be confirmed.

However, Tánaiste and Minister for Finance Simon Harris indicated in a Dáil debate this week that the Carbon Tax, which comprises a large proportion of the tax component of fuel prices, will not be affected by any changes.

It remains to be seen if the government will respond to calls to reduce the rate of excise duty on fuel, as it did in 2022 in response to the Russian invasion of Ukraine.

The president of Irish Farmers' Association (IFA), Francie Gorman, said today (Sunday, March 22) that he has written to the Tánaiste and Minister for Finance Simon Harris calling for a suspension of the Carbon Tax on green diesel.

Gorman said he has set out the "very serious impact" that the Middle East conflict is having on farmers, and that he has sought "meaningful measures" to address the crisis.

Green diesel has increased by over 50% since the conflict in the Middle East began around three weeks ago.

“Apart from the extra direct cost for farmers, farm contractors who do a lot of work on farms are experiencing significant cost increases,” Gorman said.

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