Dáil Éireann Debate, Wednesday - 30 March 2022
22. Deputy Joe O'Brien asked the Minister for Transport if his attention has been drawn to the rapid increase in the price of AdBlue for hauliers in recent weeks and if steps can be taken to assist hauliers with this cost increase. [16841/22]
Amharc ar fhreagraThe Government is very much aware of the increased costs that the haulage sector has been facing over recent weeks, including as a result of higher prices for the fuel additive AdBlue. That is why, on 15 March 2022, the Government approved an emergency support measure – the Licensed Haulage Emergency Support Scheme – to address cost pressures in the sector. Details on how to avail of the scheme will be communicated directly to licensed hauliers as soon as possible by my officials using the contact email address held by the Department’s Road Transport Operator Licensing Unit.
You will also be aware that on 09 March 2022, in recognition of rising fuel costs for all citizens and businesses, the Government reduced Excise duty by 20 cent per litre of petrol, 15 cent per litre of diesel and 2 cent in the excise duty charged on marked gas oil in order to reduce the cost of fuels.
Additionally, it should be noted that the Diesel Rebate Scheme offers a partial excise refund to qualifying operators when the price of diesel is 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 cent per litre. In recognition of the vital role that the haulage sector plays in the economy, this increase has been maintained since.
The Minister for Finance has written to the European Commission to ask what flexibilities might be available on an emergency basis to reduce the tax on fuel. Currently, however, the EU Energy Tax Directive limits the possibility of further reducing the tax on fuel. Specifically, the Directive requires a minimum tax of €0.33 per litre and the measures already decided have reduced the tax on diesel to the minimum.
In general, it should be recalled that the causes of these fuel price pressures are not within the control of Government and are being directly influenced by external factors, including the Ukraine crisis.
The Government has limited resources but through the Excise measure announced on 09 March, as well as the Licensed Haulage Emergency Support Scheme approved on 15 March 2022, it has responded to help to ease the impact of these price increases. However, we must accept that it will not be possible to insulate citizens and businesses from the full impact of these fuel price increases. In providing 8 weeks emergency support with these sudden increased costs, the Government is seeking to cushion the shock of the rapid spike in fuel prices. While it remains to be seen how fuel prices evolve it is imperative that haulage businesses engage with their customers on the need for the prices for their services to reflect the increasing costs.
