Three price hikes

Three price increases are set to take effect from midnight on Thursday, with an end to reduced taxes on motor fuel and hospitality coinciding with extra charges for unrecycled household waste.

A new levy on customers takes effect on September 1st under the Waste Management (Landfill Levy) (Amendment) Regulations 2023 and the Circular Economy (Waste Recovery Levy) Regulations 2023, which introduces a waste recovery levy of €10 per tonne (or 1,000kg), and a €10 increase to the existing “landfill levy” to €85 per tonne.

Refuse collection providers will increase their prices to offset the impact on their business of the levy, which aims to encourage recycling and reduce the amount of waste that goes to landfill.

[ Fuel prices could cross €2 a litre again in winter, AA Ireland warns ]

In an email to customers this week, Panda said there would be a charge of €0.01 per kg of general waste collected from customers homes. This levy will be subject to VAT at a rate of 13.5 per cent, which would be referenced and calculated as a separate line item on any invoice related to general waste.

As the levies apply only to “black” bin waste, householders can manage the impact of this charge by sorting their waste and reusing and recycling as much as possible to minimise their overall household waste charges.

“Please seize this opportunity to increase your segregation from general waste to your recycling and compost bins as much as possible,” the company wrote.

Last month, Thornton’s also announced an increase in their charges, blaming the levy “in addition to other inflationary costs”.

Cost of living

The excise duty on a litre of petrol and diesel will climb by 7c and 5c respectively from Friday as a measure introduced last year to help consumers during the cost of living crisis nears to an end.

Minister for Finance Michael McGrath on Tuesday said this increase was “locked in” but that a final planned increase to the tax, which would bring it back to its original level from the end of October, would be kept under review as the Government prepares the budget package. This would add 6 cent a litre to the price of diesel and 8 cent for petrol.

The average cost of motor fuel stands at around €1.70 a litre at present, meaning it could soon cross the €2 barrier again.

The reduced 9 per cent VAT rate for tourism, hospitality and some other services - including hairdressing - will expire at midnight on Thursday and return to 13.5 per cent. Last week Ibec called for it to be maintained, warning of financial pressure on firms, however, the Government extended the lower rate for the final time in February.