The total estimated costs of the support packages the Government has introduced is over €750 million. While no government can fully insulate its people from the effects of the energy crises, Ireland’s support package is one of the largest in Europe on a per capita basis.
The support package, including total excise rate and NORA reductions, has reduced the cost of diesel and petrol by 32 and 27 cent per litre, respectively. The packages provide targeted support measures to sectors that have been very badly affected by rising fuel prices – in particular our farmers, agriculture contractors, hauliers and coach operators. Furthermore, the Government lengthened the fuel allowance season by a further four weeks, increasing the benefits to around 470,000 households by some €152 per household and deferred the 1 May carbon tax increase until 14 October.
With regard to taxation of fuels it is important to highlight that we must operate within the confines of EU law. In this regard, both the EU Energy Tax Directive and the EU VAT Directive are relevant.
Government will continue to actively monitor global energy market activity, the impact at national level in terms of consumer prices, and respond accordingly.