Dáil Éireann Debate, Tuesday - 21 April 2026
277. Deputy John Connolly asked the Tánaiste and Minister for Finance if he has further plans to review the excise rates on fuel following the recent spike in prices; and if he will make a statement on the matter. [26555/26]
View answer281. Deputy Joe Cooney asked the Tánaiste and Minister for Finance to outline all discretionary measures his Department could take to reduce Government taxes on petrol, diesel and kerosene; and the maximum taxation reduction possible on these fuels under current legislation; and if he will make a statement on the matter. [26598/26]
View answer309. Deputy Louis O'Hara asked the Tánaiste and Minister for Finance the measures his Department will take to address rising fuel costs; and if he will make a statement on the matter. [26485/26]
View answerI propose to take Questions Nos. 277, 281 and 309 together.
The Government recognises and understands the pressures on all families and businesses that have arisen due to rising fuel costs as a result of the conflict in the Middle East
In recognition of this fact, on 14 April the Government announced additional measures to those previously announced on 24 March that will benefit both households and businesses. This was done in consultation and positive engagement with recognised stakeholder groups over the past number of weeks.
Last week, I introduced a second package of measures that included further reductions in the rates of Mineral Oil Tax (MOT) which, inclusive of VAT, will reduce the costs on auto-diesel and petrol by 10 cents per litres, and MGO/green diesel by 2.4 cents per litre. Together with the MOT reductions implemented from 25 March, and the reduction of the NORA Levy to €0.001, this will bring VAT inclusive reduction on auto-diesel, petrol and MGO to 32, 27 and 7.4 cents per litre respectively.
The total cost of the excise reduction measures is in the region of €410 million, inclusive of VAT.
These excise reduction measures and the previously announced reduction of the NORA levy, implemented by the Minister for Climate, Energy and the Environment, will remain in place until 31 July 2026.
In addition, I have also deferred the planned increase in carbon tax, scheduled for 1 May, until 14 October. This will impact green diesel and non-propellant fuels such as kerosene heating oil, natural gas and solid fuels. The estimated cost of delaying the carbon tax increase on home heating fuels/MGO until 14 October is €22 million.
The package is a significant response to real pressures being felt here and globally and will directly help people impacted by this unprecedented global crisis in energy supply resulting from the war in the Middle-East.
Policy options in regard to support measures must have due regard to EU legislative frameworks. With regard to financial support measures to ease energy price inflation this framework includes the EU Energy Tax Directive (ETD), the EU VAT Directive and the General Block Exemption Regulation (GBER) which governs State Aid measures.
Energy taxation in Ireland is governed by the ETD, which sets out excise duty rules covering all energy products in the EU used for heating and transport, as well as electricity. The Directive sets out minimum levels of taxation applicable to these energy products for specific fuel uses.
Further information on ETD minimum rates and the legislation governing the taxation of fuel in the EU is available on the European Union website at the link provided: https://eur-lex.europa.eu/eli/dir/2003/96/oj/eng
As regards the EU VAT Directive, this provides that all goods and services are liable to VAT at the standard rate, unless they fall within the categories of goods and services specified in Annex III of the VAT Directive, in respect of which Member States may apply a lower rate of VAT. Motor fuels, such as petrol and auto-diesel, are not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT or an exemption to be applied, and so they are liable to VAT at the standard rate, currently 23%.
EU State Aid rules as set out in the GBER must also be observed as regards targeted supports for industry.
