Dáil Éireann Debate, Tuesday - 15 October 2019
143. Deputy Michael McGrath asked the Minister for Finance the details of the diesel rebate scheme; the annual cost of the scheme; the way in which it compares to the previous rebate scheme; and if he will make a statement on the matter. [41998/19]
View answerThe Diesel Rebate Scheme (DRS) was introduced in 2013 and offers a partial refund to qualifying road operators on the excise paid on diesel when the retail price is €1.00 (Vat exclusive) or above. The maximum rebate is 7.5 cents per litre when the retail price is €1.25 (Vat exclusive) or above.
Certain qualifying criteria apply, for example, auto diesel must be purchased in the State, either in bulk (over 2,000 litres) or via a Revenue approved Fuel Card, and used in a qualifying vehicle for the purpose of business transport activities. Operators with a licence issued in other EU Member States are also eligible to claim on diesel purchased in the State subject to meeting all the other scheme criteria.
The cost of this scheme depends upon the average retail price of diesel as well as the uptake of the scheme by qualifying road transport operators. While claims in respect of 413 million litres of diesel were made in respect of 2014, at a total cost of €21 million, the relatively low price of oil in recent years has resulted in low costs for the scheme. The scheme cost €2.4 million in 2018 and €8.4 million in the year to date.
In recognition of the challenges facing the road haulage sector due to the uncertainty surrounding Brexit, I announced in my budget speech that the Diesel Rebate Scheme is being enhanced. The publication of the Finance Bill on Thursday 17th October will set out the details of the enhancements to the Scheme. This is intended as a temporary support measure, to be reviewed as part of the annual budgetary process.
