An Irish MEP has warned the European Commission that farmers, hauliers and households are facing a "serious costs crisis".

MEP Ciaran Mullooly has called for an urgent EU and national action to stabilise prices.

Speaking in the European Parliament in Strasbourg, Mullooly said the situation facing key sectors of the economy is "deteriorating quickly due to rising fertiliser and fuel prices".

“Our farmers, contractors and road hauliers are facing a very serious costs and overheads crisis, which could have really, really serious implications," he said.

Mullooly said the impact of the EU’s Carbon Border Adjustment Mechanism (CBAM) is already being felt in fertiliser prices across Europe.

'Skyrocketing'

He added that geopolitical tensions in the Middle East are now compounding the problem by driving up fuel prices.

“They've sent the price of all fuels skyrocketing," Mullooly said.

The MEP said he is "hearing daily from businesses" in Ireland who are struggling with the surge in operating costs.

“One Longford transport company owner rang me to say his bills had gone up €3,000 in a week, 10%. Commissioner, we have to do something," Mullooly said.

Measures to reduce pressure

The Midlands North West MEP has called on the European Commission to consider immediate measures to reduce pressure on the agricultural and transport sectors.

“We must act on this quickly. We should look at suspending tariffs on fertiliser imports at this stage," Mullooly said.

Mullooly also said the Irish government must act at national level to ease the burden on farmers and businesses.

“I also say the Irish government must suspend carbon taxes for this crisis to try and deal with it."

He warned that the crisis "extends far beyond the farming sector".

"Households and businesses are under enormous financial pressure," he added.

“If oil prices continue to rise unchecked, we risk seeing further inflation and serious economic and social consequences.”