Dáil Éireann debate -
Tuesday, 6 Oct 1998

Vol. 494 No. 4

Written Answers. - Motor Fuels.

John Gormley

Question:

247 Mr. Gormley asked the Minister for Finance his Department's views on the rate of excise duty currently applied to liquid petroleum gas relative to diesel; if it is the policy of his Department to promote liquid petroleum gas and other alternative cleaner transport fuels; and if he will make a statement on the matter. [18314/98]

John Gormley

Question:

258 Mr. Gormley asked the Minister for Finance whether it is the policy of his Department to promote the use of liquid petroleum gas and other alternative cleaner transport fuels in the provision of public transport by applying appropriate fiscal reforms in the area of fuel pricing; and if he will make a statement on the matter. [18355/98]

Minister for Finance: (Mr. McCreevy)

I propose to take Questions Nos. 247 and 258 together.

The current rate of excise duty for liquid petroleum gas, LPG, for automotive use is £56.75 per 1,000 litres compared to £256.14 per 1,000 litres for auto-diesel. Bus and rail services benefit from a concessional rate for diesel of £17.90 per 1,000 litres. The LPG industry has made a submission to me to reduce the excise rates on LPG and I will be considering that in the run-up to the budget.

In considering the case for the promotion of clean technologies, I must have regard to the need to raise revenue on mineral oils and to the relevant EU directives which lay down harmonised minimum rates of excise for such products, including LPG.