The Irish Natura and Hill Farmers' Association (INHFA) is calling for "urgent action" to be taken by government to address escalating energy costs for farmers and rural areas.

Pheilim Molloy, the organisation's president, called on government to take immediate action, saying that, while the recent increases are impacting every aspect of the economy, rural areas and the farming sector "are particularly vulnerable".

"Over the last two weeks, we have seen white diesel increase by 35c/L and the state has benefitted, through increased VAT, by 8c/L," Molloy claimed.

"This comes on the back of substantial tax take through excise at 42.57c/L...and Carbon Tax at almost 19c/L, with this set to increase further in May," he added.

For petrol, the INHFA president said: "There has also been a dramatic increase close to that on white diesel and, while the make-up of the tax take is slightly different to white diesel, the state [is an] even bigger benefactor with a higher tax paid."

However, Molloy stressed that green diesel has seen the largest proportionate increase over the last two weeks, with the state "once again benefitting by over 5c/L, through an increased VAT take, albeit at a lower rate".

He said it is "vital" that the state take action on these cost increases.

The INHFA is calling for a suspension of the Carbon Tax; a reduction in the VAT rate for white diesel and petrol to 13.5%; and the full abolition of VAT for green diesel and all home heating oils.

According to the farm organisation, this would bring current white diesel prices, which are now at around €2.10/L, down to €1.72/L; would bring the price of petrol down under €1.70/L; and would lower the price of green diesel to around €1.10/L.

Molloy cautioned against any solution solely related to excise tax, saying: "While any move on tax is welcome, moving only on excise will do nothing on the price of green diesel and will definitely not reduce white diesel by 40c/L, as we have proposed."

The farm organisation president called for "immediate action on this, because unfortunately this crisis is not going away".