Dáil Éireann Debate, Tuesday - 14 July 2026
199. Deputy Malcolm Byrne asked the Tánaiste and Minister for Finance the monitoring measures that are in place and what assessment has occurred to ensure that where hauliers and others are using the fuel rebate scheme that the benefits are passed on to those contracting haulage services. [53208/26]
View answerIreland’s Diesel Rebate Scheme (DRS) is a fossil fuel subsidy that operates in accordance with the EU’s Energy Tax Directive, and the General Block Exemption Regulation on State aid. In 2025, almost €40 million was paid out under the Scheme.
Provisions for the DRS were introduced in Finance Act 2013 as a measure to protect the competitiveness of the road transport sector, and the wider economy, from the impact of the prevailing high price of auto diesel at that time. The DRS provides for a partial repayment of Mineral Oil Tax (MOT) on auto diesel purchased in the State and used in qualifying vehicles by licensed Irish and EU road haulage and passenger transport operators, in the course of their business.
On 24 March 2025, a Financial Resolution was passed providing for amendments to the DRS to temporarily enhance benefits for qualifying operators in respect of auto diesel purchased on or after 1 January to 30 June 2026. The maximum rate of repayment under the Scheme was increased from €75 to €120 per 1,000 litres for auto-diesel purchased by qualifying operators between 1 January and 30 June 2026. The maximum repayment rate of 12 cents per litre is reached when average retail prices are at or above of €1.43 per litre including VAT. Finance Bill 2026 further extends this measure until 30 September 2026.
The temporary enhancement to the DRS was agreed by Government in light of the severe fuel price impacts that arose following the outbreak of conflict in the Middle East. This enhancement is a short term and targeted measure intended to help to ease the burden of households and businesses across the State by minimising the inflationary impact of fuel cost spikes for road haulage and bus passenger services during this challenging period.
We can already see a tentative easing in the CSO’s inflation figures for June, with the headline rate of annual inflation moderating slightly to 3.3 per cent and energy prices falling by 2 per cent in the month.
My Department does not have a role in monitoring the pass through rate of the enhanced Diesel Rebate Scheme. The pricing of haulage services are commercial decisions made by each individual business. As the Deputy will be aware, Ireland is market economy whereby prices are determined based on supply and demand and not controlled by Government.
The Competition and Consumer Protection Commission (CCPC) is the statutory body responsible for enforcing and promoting compliance with competition and consumer protection law in Ireland. This includes taking action against those that engage in cartel behaviour or abuse a dominant position in a market. Businesses or individuals that breach competition law can be subject to criminal, administrative or civil sanctions. Any individual or business with evidence of potential cartel behaviour is encouraged to make a secure and confidential report to the CCPC via their website.
