Michael Healy-Rae
Question:447. Deputy Michael Healy-Rae asked the Minister for Finance if he will address a matter (details supplied) regarding excise duty on fuel; and if he will make a statement on the matter. [37918/23]
View answerMonday, 11 September 2023
Questions (447)
Written answers
In recognition of the impact of increased fuel prices in 2022, the Government provided for excise rate reductions effective from 10 March 2022 on petrol and diesel in the order of 20 and 15 cent per litre VAT inclusive. A further 1 cent reduction was applied from April to offset the anticipated increase in retail price arising from biofuel obligation rate changes. These rate reductions were due to expire in August 2022 but were extended initially to October 2022 and then to February 2023. In February 2023 the Government further extended the reductions with a phased restoration of rates which began in June 2023:
• 01 June – VAT inclusive increase of 6 cent on petrol and 5 cent on diesel.
• 01 September - VAT inclusive increase of 7 cent on petrol and 5 cent on diesel.
• 31 October - VAT inclusive increase of 8 cent on petrol and 6 cent on diesel.
This reflects a decision which considered both the impact on public finances and the need to support citizens and industry. The Mineral Oil Tax reductions are estimated to have cost over €970m between March 2022 and June 2023, and there will continue to be an additional cost to the exchequer while reductions apply.
Both the June and September rate restorations have now been implemented and as the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.