Tax Code

Monday, 11 September 2023

Questions (454)

Fergus O'Dowd

Question:

454. Deputy Fergus O'Dowd asked the Minister for Finance to respond to concerns raised by an organisation (details supplied); and if he will make a statement on the matter. [38173/23]

View answer

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 (MOT) 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.

With regard to price differentials in border areas, it should be noted that the final retail prices of fuel is determined by a number of factors including energy market dynamics, wholesale pricing policy, transport costs, exchange rate impacts, taxation and individual retailer pricing policies.

The table below sets out the excise rate applicable in the State with effect from 1 September 2023 :

Fuel	Excise Rate per 1000 Litres
Petrol	€589.03
Auto Diesel	€506.75

The equivalent rates applicable across the UK, including Northern Ireland are set out below :

Fuel	Excise Rate per 1000 Litres
Petrol	£529.50
Auto Diesel	£529.50