You can expect a hike in diesel prices after Budget 2017

A series of tax increases is reportedly on the way...

The Exchequer is aiming to bring the tax charged on diesel in line with the petrol rate with the first hike planned for Budget 2017, according to the Irish Times.

To discourage people from buying diesel cars due to concerns over urban air quality, a year-on-year increase of 2.18 cent per litre over the course of five years is in the pipeline.

The Irish Times reports pre-budget papers from senior government officials in mid-July as stating:

“The OECD have recommended at least an equalisation of excise rates on petrol and diesel to address negative externalities caused by the combustion of these fossil fuels.

"The basis of this suggestion is the lower tax rate on diesel fails to account for the social and health environmental externalities caused by its combustion. A litre of diesel produces approximately 15.5% more greenhouse gases than a litre of petrol."

The plan would see the price of filling a 60-litre tank jump €1.30 from October 11th. If a motorist is filling up once a week, this equates to an extra €68 annually.

Diesel drivers could be paying an extra €330 million in tax if the fuel price escalator is introduced.

According to new figures from the Central Statistics Office (CSO) earlier this month, 70% of the 119,952 new cars taxed between January and July had diesel engines.