Dáil Éireann Debate, Tuesday - 9 April 2024
289. Deputy Marian Harkin asked the Minister for Finance to detail in percentage terms (in tabular form, on 1 January for the year 2014 and the years 2020 to 2024 inclusive), each of the following taxes/levies where relevant (excise, NORA, carbon tax, better energy) on the pump price of a litre of petrol and diesel. [14053/24]
View answerFinance Act 1999 provides for the application of excise duty in the form of Mineral Oil Tax (MOT) to liquid fuels. MOT applies volumetrically which means that the amount of MOT charged is independent of the cost price of the fuel concerned. MOT comprises a carbon (MOTCC) and a non-carbon component (MOTNC). The carbon component, or carbon charge, is more commonly referred to as carbon tax. The non-carbon component of MOT is often referred to as “excise”, “fuel excise”, “fuel tax” or “fuel duty”. It is important to note that both components of MOT are excise.
Current MOT rates are available on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/energy-excise-duty-rates.pdf. Historical MOT rates are available in the Accounting for MOT Tax and Duty Manual at www.revenue.ie/en/tax-professionals/tdm/excise/mineral-oil-tax-and-carbon-charges/mineral-oil-manuals/accounting-for-mineral-oil-tax-manual.pdf.
In response to the global energy crisis, temporary cuts to MOT rates on petrol, auto-diesel and marked gas oil were introduced in March 2022. Most of these cuts have now been reversed with the final stage of rates restoration scheduled for 1 August this year.
Under the National Oil Reserves Agency (NORA) Act 2007, NORA has responsibility for managing the State’s emergency stocks of oil. NORA collects a levy on oil disposals to fund its activities. The NORA levy is currently charged at a rate of two cents per litre on petrol and auto-diesel, having been temporarily reduced to 0.1 cents per litre from 12 October 2022 to 28 February 2023 to complement the MOT rate cuts introduced in response to the energy crisis.
In addition to MOT and the NORA levy, petrol and auto-diesel are subject to Value-Added Tax (VAT). VAT is charged on the full consideration, including all other taxes and levies. Petrol and auto-diesel are liable to VAT at the standard rate, currently 23%. VAT at 23% applied for all other periods concerned except from 1 September 2020 to 1 March 2021 when the standard VAT rate was 21%. Historical VAT rates are available on Revenue’s website at www.revenue.ie/en/vat/vat-rates/historical-vat-rates/index.aspx.
The following tables provide a breakdown of the taxes and levies applying to petrol and auto-diesel on 1 January 2014, and on 1 January 2020 to 2024 inclusive. Any discrepancies are due to rounding. Historical retail prices are taken from the EC Weekly Oil Bulletin at energy.ec.europa.eu/data-and-analysis/weekly-oil-bulletin_en.
|
Petrol/litre |
1 Jan 2014 |
1 Jan 2020 |
1 Jan 2021 |
1 Jan 2022 |
1 Jan 2023 |
1 Jan 2024 |
|
Pre-taxes/levies |
€0.66 (42%) |
€0.54 (38%) |
€0.41 (33%) |
€0.72 (43%) |
€0.79 (50%) |
€0.74 (44%) |
|
NORA Levy |
€0.02 (1%) |
€0.02 (1%) |
€0.02 (2%) |
€0.02 (1%) |
€0.00 (0%) |
€0.02 (1%) |
|
MOTCC |
€0.05 (3%) |
€0.06 (4%) |
€0.08 (6%) |
€0.09 (6%) |
€0.11 (7%) |
€0.13 (8%) |
|
MOTNC |
€0.54 (35%) |
€0.54 (38%) |
€0.54 (42%) |
€0.54 (32%) |
€0.37 (24%) |
€0.48 (28%) |
|
MOT Total |
€0.59 (38%) |
€0.60 (42%) |
€0.62 (49%) |
€0.64 (37%) |
€0.48 (31%) |
€0.61 (36%) |
|
VAT |
€0.29 (19%) |
€0.27 (19%) |
€0.22 (17%) |
€0.32 (19%) |
€0.29 (19%) |
€0.31 (19%) |
|
Taxes & levies |
€0.90 (58%) |
€0.89 (62%) |
€0.86 (67%) |
€0.97 (57%) |
€0.78 (50%) |
€0.94 (56%) |
|
Retail price |
€1.56 |
€1.43 |
€1.28 |
€1.70 |
€1.57 |
€1.68 |
|
Auto-diesel/litre |
1 Jan 2014 |
1 Jan 2020 |
1 Jan 2021 |
1 Jan 2022 |
1 Jan 2023 |
1 Jan 2024 |
|
Pre-taxes/levies |
€0.71 (48%) |
€0.57 (43%) |
€0.44 (37%) |
€0.74 (47%) |
€0.95 (56%) |
€0.82 (49%) |
|
NORA Levy |
€0.02 (1%) |
€0.02 (2%) |
€0.02 (2%) |
€0.02 (1%) |
€0.00 (0%) |
€0.02 (1%) |
|
MOTCC |
€0.05 (4%) |
€0.07 (5%) |
€0.09 (8%) |
€0.11 (7%) |
€0.13 (8%) |
€0.15 (9%) |
|
MOTNC |
€0.43 (29%) |
€0.43 (32%) |
€0.43 (36%) |
€0.43 (27%) |
€0.30 (17%) |
€0.38 (22%) |
|
MOT Total |
€0.48 (32%) |
€0.49 (37%) |
€0.52 (44%) |
€0.54 (34%) |
€0.43 (25%) |
€0.53 (31%) |
|
VAT |
€0.28 (19%) |
€0.25 (19%) |
€0.20 (17%) |
€0.30 (19%) |
€0.32 (19%) |
€0.31 (19%) |
|
Taxes & levies |
€0.78 (52%) |
€0.76 (57%) |
€0.74 (63%) |
€0.85 (53%) |
€0.74 (44%) |
€0.86 (51%) |
|
Retail price |
€1.49 |
€1.33 |
€1.18 |
€1.60 |
€1.69 |
€1.68 |
Section 100(5) of Finance Act 1999, which has been in place since 2012, relieves biofuels from the carbon component of MOT. The tables above list the full carbon tax rates (MOTCC) applicable to petrol and auto-diesel. For petrol and auto-diesel blended with biofuel, the carbon tax rates are reduced in proportion to the biofuel content.
