Irish Haulage Sector Warns of Crisis as New Transport Taxes Impact Rural Ireland

New Transport Taxes Take Effect

New government-imposed fuel taxes, toll charges, and levies have come into effect in Ireland as of January 1, 2026, drawing sharp criticism from the Irish Road Haulage Association (IRHA). The organisation warns that these measures are having a disproportionate impact on rural Ireland and are pushing haulage companies to the brink of collapse. Ger Hyland, President of the IRHA, stated that 'every extra penny at the pump and every levy on our livelihoods is another nail in the coffin of the haulage industry, but also on small business in rural Ireland.'

Rising Costs for Hauliers and Consumers

The IRHA highlights that Ireland's diesel prices are now among the highest in the European Union. The cumulative effect of various policy decisions over the past five years has added approximately €19 to the cost of filling a typical 60-litre fuel tank, including a further increase of about 5 cents per litre at the start of 2026. Specific increases contributing to this burden include:

• An increase in the Renewable Transport Fuel Obligation (RTFO) blending rate from 25% to 32%, raising the cost of unleaded petrol by 2.1 cents per litre and diesel by 3.2 cents per litre (excluding VAT).
• The Better Energy Levy increasing from €0.012 per litre to €0.017 per litre (excluding VAT) across all fuel grades.
• A rise in the carbon tax by €7.50 to €71 per tonne of CO2, adding over 2.5 cents per litre to fuel costs.
• New charges at Dublin Port, including a 5% increase in container prices and a new €15 infrastructure charge.
• Increased toll prices, with the Dublin Port Tunnel toll rising by €1 during weekday mornings, and further increases for Heavy Goods Vehicles (HGVs) on routes such as the M50, M4, and M3. Some hauliers are reportedly paying up to €250,000 annually in tolls alone.

These rising operational costs are being passed on to consumers, impacting the prices of essential supermarket staples like 'potatoes, milk, and bread'.

Impact on Rural Ireland and Economic Competitiveness

IRHA President Ger Hyland has accused the Irish government of 'punishing rural Ireland'. He argues that the government 'takes the easy option every time and hike taxes on transport – which disproportionately impacts on rural Ireland, where there is no viable public transport alternative'. The association contends that these policies are making the Irish economy uncompetitive, particularly at a time of fierce international competition. Eugene Drennan, a former IRHA President, echoed these sentiments, stating the government is 'deeply out of touch' with the cost pressures facing rural Ireland.

Calls for Government Action

The IRHA has previously appealed for government intervention, including calls for rebates on biofuels and M50 toll relief for licensed hauliers. While the Department of Finance acknowledges the impact of fuel costs, it maintains that the carbon tax system is designed to be progressive. However, the haulage industry warns that without significant changes, more companies will be forced out of business, potentially leading to protest action if members feel they have no alternative.