Minister for the Environment Dick Roche yesterday ruled out the introduction of a carbon tax on fossil fuels as suggested in an Economic and Social Research Institute (ESRI) report.
The ESRI said in its report, Aspects of Irish Energy Policy, that unless such a tax was considered for certain sectors, it was unlikely the Republic would meet its emissions targets. In light of recent oil prices, a "sensitive approach" in this area was needed.
Yesterday, however, the Minister ruled out the introduction of carbon tax, saying the decision was made in 2004 and it was inopportune to revisit it now.
Meanwhile, Siptu general president Jack O'Connor called for an immediate reduction in excise duty to reduce the impact of higher energy costs on the cost of living. He said the Government must learn from the lessons of the past and act on fuel costs now.
Mr O'Connor made his remarks as petrol prices continued to rise toward the €1.30-a-litre mark for unleaded fuel.
"I am flabbergasted at the complacency of the Government response to the clear evidence of a serious crisis developing before our eyes. The 9 per cent surge in the price of home heating oil in the month of July alone has been followed this past week by a 7 to 8 per cent increase in prices facing the average motorist at the petrol pumps. There has been an overall increase of 25 per cent in petrol prices alone since January," Mr O'Connor said.
He said it was a repeat of the crisis in the second half of 2000 when a resumption of rising inflation almost led to the collapse of the then national pay agreement.
Mounting demands by Siptu calling for a review of Government policy and an anti-inflation package were only yielded to after the December 2000 budget, when it was almost too late.
"Consumer prices should be eased by reducing excise duty and by the Government forgoing its own unexpected windfall resulting from the surge in prices," he said. In this context, the ESRI call for increased carbon taxes was ill-timed and had unfortunately detracted from the more positive comments the ESRI report had made in favour of the greater use of public transport, he added. Working people must be offered enhanced public transport provision, he also said.
Filling stations nationwide reported heavy demand and even queues over the weekend, in advance of price increases.
Oil industry sources said the US hurricane was unlikely to have any lasting effect on Irish petrol supplies.
On international markets, oil prices fell sharply on Monday - the drop started on Friday after the release by industrialised nations of emergency oil stocks to prevent a fuel crisis in the US.