Dáil Éireann Debate, Tuesday - 29 September 2026
138. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Finance the additional VAT receipts accruing to the Exchequer for each one cent per litre increase in the pre-tax price of petrol and diesel; and the total additional VAT collected on road fuels in 2026 to date as a result of higher wholesale prices. [68467/26]
View answerTo date, this Government has delivered one of the largest support packages in the EU per head capita with over €1.3 billion in supports. In so doing, we have:
• deferred the 1 May Carbon Tax increase on home heating fuels;
• reduced excise duty on diesel, petrol and ‘green diesel’;
• enhanced the Diesel Rebate Scheme for hauliers and passenger transport operators - mitigating price increases in these sectors and the associated knock-on effects they have on food and passenger transport prices;
• funded payments to road transport operators under the Road Transporters Support Scheme;
• funded payments to farmers, farm contractors and fishers under the Fuel Income Support Scheme; and
• reduced the NORA Levy; and
• extended the winter heating season by four weeks, increasing the total yearly payment to €1,216.
This Government has shown that we are not afraid to act when the circumstances demand action, but we have also been clear that the best way to manage the State's finances is as part of a carefully considered annual Budget process, which will be delivered next week.
I am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide the VAT yield on petrol and diesel using taxpayer information alone.
However, using Revenue and third-party data sources, a tentative estimate of the VAT generated will be provided to the Deputy.
As the Deputy will be aware, schemes such as the VAT deduction scheme, the double income tax relief scheme and the Diesel Rebate Scheme mean that a significant portion of revenue raised from taxation of fuels is repaid to economic operators who are availing of these schemes.
As such the most up to date estimate of VAT arising from fuel prices is roughly €2.25 million per week.
