The tax rise, which was part of last week’s Budget, will add 2.1c to a litre of petrol, and 2.5c for diesel.
Figures from European statistics agency Eurostat show Ireland had the highest petrol and diesel inflation in Europe in August, at a time when almost every other country recorded falls in prices.
Industry group Fuels for Ireland said Irish motorists pay more tax on fuel than any other EU State.
It said that since this Government took office in 2020, an additional €12 tax has been added to a tank of fuel.
Kevin McPartlan of Fuels for Ireland said: “As we approach a general election, Fuels for Ireland calls on all parties to make a manifesto commitment to establish an expert group to review tax on transport and heating fuels.
“We must support the switch to sustainable energy, ensure fair revenue to the State and keep fuel affordable.”
He said the latest rise in carbon tax will mean Irish motorists will have the most expensive diesel in the EU.
Adding more carbon tax to petrol has left us with the fifth highest priced petrol in Europe.
The latest increase in carbon tax comes when crude oil prices have gone from being subdued to rising again amid fears of a wider Middle East war.
Rising crude prices will send the prices of petrol, diesel and home heating oil higher.
Brent crude has risen by $10 in the last week to around $80 a barrel.
Analyst Justin Doyle of specialist bank Investec in Dublin said the crude oil market was very volatile.
“The market has been very jittery ever since the Iranian strike on Israel as it worries what might happen next,” he wrote in a note to investors.
In August, the Government restored the full rate of excise duty on petrol and diesel.
The August excise duty hike added 4c to the litre of petrol, which Vat is included, and 3c to diesel.
Carbon tax rises are announced in every Budget.
This is because the Government has committed to increasing the carbon tax to €100 per tonne by 2030.
Carbon tax increased by a further €7.50 to €63.50 per tonne of CO2 from last week.
The hike in carbon tax on petrol and diesel was meant to be implemented last week but had to be delayed due to the failure of the Government to issue an official notice about this on time.
Fuels for Ireland wants an expert group on fuel taxation set up.
This would bring together government departments, the Revenue Commissioners, economists, environmental specialists and fuels industry representatives, to develop a balanced fiscal strategy.
The aim of a tax on carbon emission is to discourage people from consuming carbon-emitting fuel and encourage them to waste less energy or move to more green-friendly fuels.
