I move:
(1) THAT for the purposes of the tax charged by virtue of section 95 of the Finance Act 1999 (No. 2 of 1999), that Act be amended, with effect as on and from 25 March 2026, by the substitution of the following for Schedule 2 to that Act (as amended by section 52 of the Finance (No. 2) Act 2023 (No. 39 of 2023)):
"SCHEDULE 2
RATES OF MINERAL OIL TAX
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Light Oil: Rates per 1,000 litres |
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Heavy Oil: Rates per 1,000 litres |
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Liquefied Petroleum Gas: Rates per 1,000 litres |
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With effect as on and from: |
Petrol |
Aviation gasoline |
Used as a propellant |
Used for air navigation |
Used for private pleasure navigation |
Kerosene used other than as a propellant |
Fuel oil |
Other heavy oil |
Used as a propellant |
Other liquefied petroleum gas |
Vehicle gas: Rate per megawatt hour at gross calorific value |
|
10 March 2022 |
€474.11 |
€474.11 |
€413.51 |
€413.51 |
€413.51 |
€84.84 |
€118.01 |
€120.55 |
€118.27 |
€54.68 |
€9.36 |
|
1 April 2022 |
€465.98 |
€465.98 |
€405.38 |
€405.38 |
€405.38 |
€84.84 |
€118.01 |
€120.55 |
€118.27 |
€54.68 |
€9.36 |
|
1 May 2022 |
€465.98 |
€465.98 |
€405.38 |
€405.38 |
€405.38 |
€103.83 |
€141.12 |
€111.14 |
€130.52 |
€66.93 |
€9.36 |
|
12 October 2022 |
€483.34 |
€483.34 |
€425.45 |
€425.45 |
€425.45 |
€103.83 |
€141.12 |
€111.14 |
€130.52 |
€66.93 |
€9.36 |
|
1 May 2023 |
€483.34 |
€483.34 |
€425.45 |
€425.45 |
€425.45 |
€122.83 |
€164.23 |
€131.47 |
€142.76 |
€79.17 |
€9.36 |
|
1 June 2023 |
€532.12 |
€532.12 |
€466.10 |
€466.10 |
€466.10 |
€122.83 |
€164.23 |
€140.28 |
€142.76 |
€79.17 |
€9.36 |
|
1 September 2023 |
€589.03 |
€589.03 |
€506.75 |
€506.75 |
€506.75 |
€122.83 |
€164.23 |
€149.09 |
€142.76 |
€79.17 |
€9.36 |
|
11 October 2023 |
€606.39 |
€606.39 |
€526.83 |
€526.83 |
€526.83 |
€122.83 |
€164.23 |
€149.09 |
€142.76 |
€79.17 |
€9.36 |
|
1 April 2024 |
€638.91 |
€638.91 |
€551.22 |
€551.22 |
€551.22 |
€122.83 |
€164.23 |
€163.96 |
€142.76 |
€79.17 |
€9.36 |
|
1 May 2024 |
€638.91 |
€638.91 |
€551.22 |
€551.22 |
€551.22 |
€141.82 |
€187.34 |
€184.30 |
€155.01 |
€91.42 |
€10.13 |
|
1 August 2024 |
€671.43 |
€671.43 |
€575.61 |
€575.61 |
€575.61 |
€141.82 |
€187.34 |
€199.17 |
€155.01 |
€91.42 |
€10.13 |
|
9 October 2024 |
€688.78 |
€688.78 |
€595.68 |
€595.68 |
€595.68 |
€141.82 |
€187.34 |
€199.17 |
€155.01 |
€91.42 |
€10.13 |
|
1 May 2025 |
€688.78 |
€688.78 |
€595.68 |
€595.68 |
€595.68 |
€160.81 |
€210.45 |
€219.50 |
€167.25 |
€103.66 |
€11.48 |
|
8 October 2025 |
€706.14 |
€706.14 |
€615.76 |
€615.76 |
€615.76 |
€160.81 |
€210.45 |
€219.50 |
€167.25 |
€103.66 |
€11.48 |
|
25 March 2026 |
€584.18 |
€584.18 |
€453.15 |
€453.15 |
€453.15 |
€160.81 |
€210.45 |
€193.06 |
€167.25 |
€103.66 |
€11.48 |
|
1 May 2026 |
€584.18 |
€584.18 |
€453.15 |
€453.15 |
€453.15 |
€179.81 |
€233.57 |
€213.39 |
€179.49 |
€115.90 |
€12.84 |
|
1 June 2026 |
€706.14 |
€706.14 |
€615.76 |
€615.76 |
€615.76 |
€179.81 |
€233.57 |
€239.83 |
€179.49 |
€115.90 |
€12.84 |
|
14 October 2026 |
€723.49 |
€723.49 |
€635.83 |
€635.83 |
€635.83 |
€179.81 |
€233.57 |
€239.83 |
€179.49 |
€115.90 |
€12.84 |
|
1 May 2027 |
€723.49 |
€723.49 |
€635.83 |
€635.83 |
€635.83 |
€198.80 |
€256.68 |
€260.16 |
€191.74 |
€128.15 |
€14.20 |
|
13 October 2027 |
€740.85 |
€740.85 |
€655.90 |
€655.90 |
€655.90 |
€198.80 |
€256.68 |
€260.16 |
€191.74 |
€128.15 |
€14.20 |
|
1 May 2028 |
€740.85 |
€740.85 |
€655.90 |
€655.90 |
€655.90 |
€217.80 |
€279.79 |
€280.49 |
€203.98 |
€140.39 |
€15.56 |
|
11 October 2028 |
€758.21 |
€758.21 |
€675.98 |
€675.98 |
€675.98 |
€217.80 |
€279.79 |
€280.49 |
€203.98 |
€140.39 |
€15.56 |
|
1 May 2029 |
€758.21 |
€758.21 |
€675.98 |
€675.98 |
€675.98 |
€236.79 |
€302.90 |
€300.83 |
€216.23 |
€152.64 |
€16.91 |
|
10 October 2029 |
€773.25 |
€773.25 |
€693.38 |
€693.38 |
€693.38 |
€236.79 |
€302.90 |
€300.83 |
€216.23 |
€152.64 |
€16.91 |
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1 May 2030 |
€773.25 |
€773.25 |
€693.38 |
€693.38 |
€693.38 |
€253.25 |
€322.93 |
€318.45 |
€226.84 |
€163.25 |
€18.09 |
".
(2) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).
This is the resolution for the temporary reductions in mineral oil tax. This first financial resolution provides for reductions in the rates of mineral oil tax applying to petrol, auto diesel and to marked-gas oil. These reductions will take effect from midnight tonight until 31 May 2026.
The rate of mineral oil tax will be reduced on a VAT inclusive basis by 15 cent per litre for petrol, 20 cent per litre for auto diesel and 3 cent per litre for marked-gas oil. To further ease the financial impact of the significant energy price shock arising from the ongoing conflict in the Gulf region and Middle East region, the Minister, Deputy O’Brien, will also reduce the NORA levy from 2 cent per litre to a nominal amount. That will require primary legislation which will be forthcoming this week. When the excise reductions in petrol and diesel are combined with the changes to the NORA levy, that means a 22 cent reduction in a litre of diesel and a 17 cent reduction in a litre of petrol.
These are concrete actions to help and support families, working people and business with the real and rising cost of fuel and energy. We know the pressure people are feeling right now. People are genuinely worried about the impact this conflict is having on their energy costs and what is facing them and their families in the weeks and months ahead.
There will be a second resolution, which we will discuss later in the House, on the diesel rebate scheme providing practical support to hauliers and coach operators. The estimate cost to the Exchequer of the two resolutions relating to the Department of Finance is approximately €160 million. When coupled with the NORA levy proposal and the fuel allowance expansion that brings the total Government intervention today to €250 million.
The Government is conscious of the increased financial pressure on households and businesses arising from this ongoing conflict. These measures are an effort in the here and now to help reduce fuel prices and to help in a practical way people at the pump and to endeavour to support key sectors of the Irish economy. Solid budgetary management in recent years means we now have the capacity to respond in a timely and targeted way to help with this energy price shock. That point should not be lost on any of us. If we look at countries endeavouring to deal with this global economic challenge, and deal with it from a position of deficit, we see how the market responds to those countries. We have an ability to respond because of the sensible economic decisions this Government and successive governments have taken in recent years and the resilience and hard work of the Irish people.
These measures will be in place for a defined period of time. I want to be very clear why that is. We have to remain nimble, agile and flexible in relation to any set of measures. It is entirely possible that what seems like the right economic medicine today may not be the prescription required in the weeks and months ahead.
Therefore the Government - and let our position not be misrepresented - reserves the option to adjust our approach as circumstances evolve to revise, amend, edit and start or stop measures that may be required in the time ahead. This approach is not unique to Ireland. It is very much in line with the European Council conclusions from Brussels last week and also with the response of other EU member states. I think I referenced in the House last week the decision taken by the Italian government to bring in measures for 20 days. Every government and set of people are trying to grapple with a fast-evolving situation both from a humanitarian point of view but, for the purpose of this debate, from an economic point of view as well.
These measures will provide mitigation for businesses and households against the recent fuel price increases. It is real money and a real reduction in taxes on petrol, diesel and green diesel. These excise reductions strike the balance between mitigating costs to consumers while managing the tax base and also respecting the law under the Energy Tax Directive.
We have to navigate this period of uncertainty to the best of our ability. To put it bluntly, nobody knows what the situation will be in a month from now. We have to remain flexible in our response. The economic impact will depend on the depth and duration of supply disruption. The Government will help to share the burden of the energy price shock but no government in the world can fully absorb the impact. That is why there is also benefit in continuing to work at European level. I will attend a meeting of the Eurogroup on Friday and the Taoiseach attended a meeting of the European Council last week because we have seen in the past where conflicts have become elongated. Europe has often considered how it can move together and various policy responses and levers we can consider as a collective.
This conflict also is a sharp reminder that we must accelerate our transition towards energy independence. While much of the discussion is quite rightly on what we can do to help people in the here and now, and that is one of the reasons we are bringing forward these measures tonight to take effect from midnight, we also have to remind ourselves that as long as we are reliant on fossil fuels from far-flung parts of the world, there is a real vulnerability from an economic security point of view as well. We have to see what we can do at a European level and an Irish level to accelerate that transition in terms of our fuel and energy supply. I think that is a view shared across this House and I welcome suggestions and proposals in relation to that.
Specifically on this resolution, we saw prices rise quickly enough on the forecourts when the war in Iran broke out. It is very important that we see these cuts passed on to the consumer very quickly as well. The Government will be monitoring this extremely closely. In the past the CCPC has done useful work. At the start of the brutal illegal Russian aggression and war on Ukraine the CCPC monitored the passing on of the impact.
I hear what the industry says. I accept the logic that for some small rural stations that it might take a little bit longer but for the vast majority, we expect to see very quick passing on of this. People were quick enough to put it up. They need to be quick enough now to show the benefit of that. The Government reserves the right to consider any further action - legislative or otherwise - that may be required should this not be the case. More broadly, I indicate again tonight the Government's intention to strengthen further the powers of the CCPC and to work on a collaborative basis across this House with the view of doing that as well.
I have heard much commentary in relation to the Government's proposals today from the Opposition. Some are constructive and some are less so. I look forward to engaging constructively in the time ahead because we all must approach this challenge with a degree of humility. We have to make sure we keep a degree of our economic powder dry because the economic situation that our country will face in the winter is very different to an economic situation that our country could face this summer if this conflict goes on for a longer period of time. We all hope it does not. We must all work for de-escalation. The set of measures we may need to consider together will indeed be different too. I am happy and eager to engage constructively with the Opposition. I ask people to acknowledge that we are taking efforts today - a €250 million package - to try to help people in the here and now.
I hope in Northern Ireland that the Executive takes the measures too that are required. I note with significant concern the comment from the Alliance MP, Sorcha Eastwood, today in relation to the delays and the lack of urgency on the part of the Sinn Féin economy and finance Ministers in relation to measures to help people with heating costs. I hope that can be resolved as well. I hope Sinn Féin's concern in relation to energy costs are not partisan concerns and do not stop at the Border.
We will work constructively with anybody in this House on ideas and proposals. Today, we are bringing forward a balanced package of measures to help people at risk of fuel poverty and people who are struggling with the home heating oil by extending the fuel allowance season for a further four weeks, helping almost 500,000 households most in need. Many of them are carers, pensioners and people with a disability but also helping people who are getting in the car tomorrow and this week and driving to work or college and trying to go about their business and trying to help somewhat while being honest that no government can absorb all of it.
I propose this resolution tonight. I reiterate our message to industry - let us play fair and let us see that passed on quickly. The Government will monitor this closely. I say to this House and the people of this country in all honesty that we have to be nimble. We may well need to return to this conversation but tonight is a start in terms of an intervention that we believe is the balanced, proportionate and measured response that will make a real difference in the here and now.