I am advised by Revenue that the estimated tax revenue collected from Mineral Oil Tax (MOT) on petrol and diesel in the first quarter of 2026 is shown in the table below.
The Deputy should note that MOT receipts collected in Q1 of 2026 predominantly relate to consumption in December 2025, January 2026 and February 2026. Consumption data for March 2026 will not be fully available until traders have filed their MOT returns in the second half of April 2026.
In relation to VAT, 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 all fuel related products and services using taxpayer information alone. However, using Revenue and third-party data sources, a tentative estimate of the VAT generated on petrol and diesel for January and February 2026 is provided in the table below. An estimate of March VAT receipts on petrol and diesel will not be available until consumption estimates become available in late April. It is important to highlight that the figures below represent the estimated total VAT yields rather than additional or "windfall" yields.
|
Fuel Type
|
MOT Non-Carbon Component €m
|
MOT Carbon Component €m
|
VAT * €m
|
Total €m
|
|
Petrol
|
147.0
|
40.2
|
57.0
|
244.2
|
|
Diesel
|
332.1
|
136.1
|
55.0
|
523.2
|
*Data is only available to February 2026 with which to estimate VAT receipts.
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.
Excise duty is calculated on a volumetric basis meaning that the cash value of the tax collected remains the same regardless of the price at the pump. What that means, in the context of the excise reductions, is that the State will collect significantly less excise for every litre of fuel sold.
While VAT operates as an ad valorem tax and therefore VAT receipts do increase if the price of a commodity increases, data is only available to February 2026.
It must be noted, however, that an increase in the price of fuel can lead to a decrease in the demand.
On 14 April, in recognition of the significant increases in energy costs owing to the conflict in the Middle East, the Government announced additional measures that will benefit both households and businesses.
This has been done in consultation and positive engagement with recognised stakeholder groups over the past number of weeks.
In addition to measures announced on 24 March, the Government announced further measures on 14 April which include:
• as part of ongoing engagement with the European Commission, Government has reduced excise on diesel by a further 10 cent (VAT inclusive), bringing the total reduction on diesel to 32 cent (VAT inclusive);
• Government has reduced the excise on petrol by a further 10 cent (VAT inclusive), bringing the total reduction on petrol to 27 cent (VAT inclusive);
• Government has reduced the excise on marked gas oil (green diesel) by a further 2.4 cent (VAT inclusive), bringing the total reduction on green diesel to 7.4 cent (VAT inclusive).
All of these reductions took effect from 15 April. These reductions and the reduction in the NORA levy will run until 31 July 2026.
In addition, Government will defer 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.
In addition a further subsidy worth up to 20c/l announced by Minister Heydon through a €100 million Fuel Subsidy Support Scheme.
These supports, totalling 27.5c/l, exceed the entirety of excise (carbon and non-carbon) charged on green diesel prior to the conflict in the Middle East (21.95c excl. VAT).
It is not possible to offset all of the recent increases, which are driven by market factors, using the tax system. However, these measures will provide significant mitigation, supporting households, businesses and farmers who are experiencing the most acute impacts of the increases in fuel prices.
