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Fuel Prices

Dáil Éireann Debate, Wednesday - 9 March 2022

Wednesday, 9 March 2022

Ceisteanna (64)

Charles Flanagan

Ceist:

64. Deputy Charles Flanagan asked the Minister for Finance his plans to increase the amount of 7.5 cent per litre allowed under the diesel rebate scheme for operators holding a valid haulage licence having regard to the serious challenges facing the transportation sector arising from increased fuel costs; and if he will make a statement on the matter. [13209/22]

Amharc ar fhreagra

Freagraí scríofa

The Diesel Rebate Scheme (DRS) was introduced in 2013 with the aim of providing support to road haulage and bus transport operators when the retail price of auto diesel is relatively high. The DRS is provided for in section 99A of Finance Act 1999 and operates on a sliding scale basis, whereby a partial rebate of Mineral Oil Tax (MOT) is available when the retail price of a litre of diesel exceeds €1.00 excluding VAT. The repayment rate increases gradually as the retail price increases up to a maximum repayment rate of 7.5 cents per litre.  In Budget 2020, the marginal rate of repayment was increased from 30% to 60% at prices over €1.07 excluding VAT. The rate of repayment is currently capped at 7.5 cents per litre which is reached when the average price of diesel, excluding VAT, is €1.16 or more per litre.

I am advised by Revenue that the DRS quarterly rebate rate is calculated using an estimate of the national average purchase price of diesel as derived from Central Statistics Office (CSO) data. 2021 rates of rebate, along with the total amount repaid under the DRS during the period, are given in the table below.

Year

QTR

DRS Rate

DRS Amount repaid €m

 

 

€/litre

 

2021

4

0.075

5.99

 

3

0.074

2.43

 

2

0.041

0.53

 

1

0.006

0.62

As the Deputy will be aware, VAT registered businesses are also eligible to claim a refund on the VAT paid for diesel used in the course of business activities. 

The Deputy will be aware of the package of measures announced today that includes a temporary reduction in the excise duty on diesel of 15 cent a litre. This will assist all transport users, rural and urban, including the transportation sector.

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