Dáil Éireann Debate, Tuesday - 15 September 2020
271. Deputy Ged Nash asked the Minister for Finance the cost of fossil fuel subsidies per year since 2016; the anticipated savings to the Exchequer in 2021 from eliminating damaging fossil fuel subsides; and if he will make a statement on the matter. [23735/20]
Amharc ar fhreagraI am advised by Revenue that, based on the methodology it used, the estimated cost of fossil fuel subsidies for the years 2016 to 2019 is shown in the table below. The savings to the Exchequer in 2021 from eliminating these subsidies is estimated to be in the region of €1.5 billion, but this does not factor in any subsequent change in consumption due to the increased Excise rates that would arise.
|
2016 |
2017 |
2018 |
2019 |
|
|
€m |
€m |
€m |
€m |
|
|
Excise forgone: Excise rate on Auto-diesel* |
384.1 |
380.3 |
414.8 |
422.8 |
|
Excise forgone: Excise rate on Marked Gas Oil* |
400.4 |
405.7 |
454.9 |
473.0 |
|
Excise forgone: Excise rate on Kerosene* |
568.7 |
589.9 |
622.5 |
578.7 |
|
Excise forgone: Excise rate on Fuel Oil* |
31.3 |
31.8 |
27.1 |
24.7 |
|
Diesel Rebate Scheme |
1.3 |
1.3 |
3.5 |
10.3 |
|
Marine Diesel Scheme |
2.3 |
2.7 |
3.2 |
2.7 |
|
Commercial Sea Navigation |
10.1 |
8.9 |
9.8 |
10.5 |
|
Horticulture Excise Duty Repayment |
0.05 |
0.05 |
0.05 |
0.08 |
|
Fuel Excise Repayment for Disabled Drivers and Disabled Passengers |
8.6 |
9.5 |
10.3 |
10.5 |
|
Total |
1,407 |
1,430 |
1,546 |
1,533 |
|
*Excise compared to the rate for Petrol |
I am further advised by Revenue that consumption data required for it to estimate the cost of fossil fuel subsidies on aviation fuel is not readily available (there is no excise charged on aviation fuel used in cross border travel). The CSO published a research paper in 2019 on fossil fuel and similar subsidies in the years 2012 to 2016. Based on the methodology it used, the CSO estimated that the fossil fuel subsidy on aviation fuel amounted to €494.4 million in 2016.
In addition, fuel used for commercial marine purposes is also included in CSO calculations of fossil fuel subsidies but not included in Revenue estimates as these fuels are, like aviation fuel, exempt from excise.
