Dáil Éireann Debate, Tuesday - 9 June 2026
531. Deputy Roderic O'Gorman asked the Tánaiste and Minister for Finance if bin companies would have benefitted from any of the fuel tax measures announced on the 12 April 2026, and in light of this, is it legitimate for bin operators to be adding a new fuel surcharge on householders bills; and if he will make a statement on the matter. [41629/26]
Amharc ar fhreagraIn response to the current fuel crisis, Government reduced MOT rates on petrol, auto diesel and marked gas oil (MGO) from 25 March, followed by further reductions which came into effect from 15 April 2026. The MOT rate cuts, inclusive of VAT, amount to 25 cents, 30 cents and 5.4 cents per litre respectively on petrol, auto diesel and MGO. The MOT rate cuts are legislated to remain in place until 31 July 2026. MOT applies to fuel when it is released for consumption and the same rate applies to a fuel type/use, regardless of the sector it is ultimately used in. This means that all auto diesel users, including bin operators, will have benefitted from the recent MOT rate cuts.
In addition to MOT rate cuts, the National Oil Reserves Agency (NORA) levy was reduced, from 1 April, from 2 cents to 0.1 cents per litre. Inclusive of VAT, the NORA levy cut amounts to just over 2.3 cents per litre on petrol and auto diesel, and almost 2.2 cents per litre on MGO.
Further Government measures to ease the financial impact of energy price inflation include a temporary enhancement to the Diesel Rebate Scheme (DRS). The revised DRS arrangements apply to auto diesel purchased between 1 January and 30 June 2026. The DRS maximum repayment rate for auto diesel purchased during this period has been increased from 7.5 to 12 cents per litre. The DRS is a State aid which applies to licenced road haulage and passenger transport operators. The scheme does not apply to any other fuel users, other than those holding a national Road Transport Operator Licence (RTOL), or the equivalent licence issued by another Member State. The State’s regulatory regime for road transport licencing falls within the remit of the Department of Transport which manages the application, assessment, and issuing of licences.
By law, passenger transporters who operate Large Public Service Vehicles (coaches, buses and certain minibuses) for hire or reward, must hold an RTOL. Road hauliers operating vehicles with a permitted laden mass of more than 3.5 tonnes must also be licensed. Certain activities, including the carriage of refuse and sewage, are exempt from road transport licensing requirements. In the specific case of a waste disposal operator - the carriage of refuse and/or sewage is exempt. However, the goods in question must be transported for the purpose of appropriate disposal (e.g., landfill or incineration). If the waste disposal operator is transporting waste by-products for commercial repurposing, an RTOL is required.
Where a bin operator is transporting refuse for appropriate disposal, they will not hold an RTOL and will therefore not be eligible for the DRS. If, on the other hand, a bin operator is carrying out activities for which an RTOL is required, that operator would be eligible for the DRS as long as other DRS qualifying criteria, such as tax clearance, vehicle specifications, fuel purchasing etc., are met.
