Dáil Éireann Debate, Tuesday - 18 October 2022
222. Deputy Colm Burke asked the Minister for Transport the action that is being taken to support businesses with the cost of petrol and diesel, particularly those that employ drivers, in view of increased prices since the beginning of the Russian invasion of Ukraine; and if he will make a statement on the matter. [51209/22]
Amharc ar fhreagraThe Ukraine crisis and matters arising from it continue to adversely affect European and Global oil markets, causing a sustained increase in the price of crude and in the price of refined products on the retail market.
The Government recognises the important role the haulage sector plays in supporting the economy and is fully aware of cost pressures on haulage businesses arising from high fuel prices in particular since the outbreak of the conflict in Ukraine.
The Government has put in place several measures to ease these cost pressures:
- On 10 March 2022, in direct response to the crisis in Ukraine, the Government introduced an Excise duty reduction of 15 cent per litre of diesel. This has now been extended to 28 February 2023.
- On 15 March 2022, the Government introduced the Licensed Haulage Emergency Support Scheme. The Scheme was administered by the Department of Transport and provided a temporary financial support of €100 per week, for eight weeks, for each eligible heavy goods vehicle authorised on the licence of a road haulage operator as of 11 March 2022. There was good uptake of the scheme, with over €15.6 million paid out to c. 3,080 operators (approx. 80% of licensed operators.)
- The Revenue Diesel Rebate Scheme (‘DRS’) has been in place since 2013 and remains available to licensed haulage operators in respect of vehicles over 7.5 tonnes. At diesel prices over €1.43 (including VAT), the maximum rebate of 7.5 cent per litre is provided. Data from the Revenue Commissioners shows that not all licensed operators currently avail of this support – I would encourage all eligible operators to do so.
- The rising cost of fuel was further recognised by the Government in the Budget through the reduction of the National Oil Reserves Agency (NORA) Levy to zero. The reduction of the NORA levy, which had been collected at a rate of 2 cent per litre, will help offset the carbon tax increase of just over 2 cent which took effect on 12 October, meaning that the price of fuel will not go up as a result of taxes or levies.
However, it should be noted that the causes of the current fuel price pressures are not within the control of Government and are being directly influenced by external factors, including the Ukraine crisis. Unfortunately, we must accept that it will not be possible to fully insulate citizens and businesses from the impact of these fuel price increases.
Since early March with the benefit of the excise reduction, 8 weeks support under the Licensed Haulage Support Scheme and the ongoing Diesel Rebate relief, haulage businesses will have had the opportunity to revise and renegotiate contracts with their clients in order to reflect increased prices, as is an unfortunate reality in all sectors across the economy.
The Government has limited resources but through the Excise measure, as well as the Licensed Haulage Emergency Support Scheme, it has responded to help to ease the impact of these price increases.
