Dáil Éireann Debate, Thursday - 3 March 2022
10. Deputy Ruairí Ó Murchú asked the Minister for Transport the supports that are available to truckers in relation to the rising cost of fuel which is pushing businesses to the brink; and if he will make a statement on the matter. [12138/22]
Amharc ar fhreagraThe current spike in energy prices arises from the global recovery from the Covid-19 pandemic in conjunction with current international tensions and supply constraint issues. This is being witnessed across the European Union as well as many other regions.
The final retail price of fuel is determined by a number of factors which include the costs of production, distribution, global market factors, international exchange rates, taxation, wholesale market contracts negotiated at different rates for the purchase of oil as well as individual retail pricing policies.
In order to mitigate the impact of fuel price increases for hauliers, the Diesel Rebate Scheme offers a partial excise refund to qualifying operators when the price of diesel is relatively high. In Budget 2020, in light of the challenges arising from Brexit uncertainty facing the industry, the marginal rate of compensation at prices over €1.32 (VAT inclusive) was doubled up to the maximum repayment rate of 7.5 cents per litre. In recognition of the vital role that the haulage sector plays in the economy, this increase has been maintained since.
In addition, businesses that are registered for VAT may deduct the VAT charged to them on the purchase of business inputs, such as road diesel and other motoring costs.
Minister Ryan and I met with the Irish Road Haulage Association (‘IRHA’) on 10 December 2021 and again on 10 February 2022 to discuss the spike in fuel prices for hauliers and the need for the sector to make progress towards decarbonisation. While no way forward was agreed, discussions are ongoing at official level on these issues.
Already however some supports are available for operators to switch to alternatively fuelled vehicles. These include a purchase grant and reduced tolls for vehicles powered by a number of alternative fuels including hydrogen, electric, and gas. In addition, Budget 2022 announced an expansion of the Accelerated Capital Allowance (‘ACA’) scheme for Gas Vehicles and Refuelling Equipment. This ACA scheme provides an accelerated wear and tear allowance for capital expenditure incurred on qualifying vehicles and refuelling equipment.
