Pat Deering (Carlow-Kilkenny, Fine Gael)
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214. To ask the Minister for Finance if he will indicate agricultural contractors in the diesel rebate scheme in his deliberations on the Finance Bill. [2609/13]

Michael Noonan (Limerick City, Fine Gael)
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Ireland, as with other countries, has experienced an increase in fuel prices. This increase is an international phenomenon. Fuel prices are driven by a number of factors including the price of oil on international markets, exchange rates, production costs and refining costs. The rise in oil prices over recent periods reflected additional factors such as geopolitical uncertainty in Northern Africa and the Middle East with potential supply disruptions. However, fuels prices have receded in recent times from highs experienced last year. Contractors using such machinery in the course of farming work are entitled to use Marked Gas Oil (MGO). The current excise duty including the carbon charge on MGO is 10.23 cents per litre, this compares to 47.9 cents per litre in respect of auto-diesel. In terms of VAT, the reduced VAT rate of 13.5% applies to MGO and the standard VAT rate of 23% applies to auto-diesel. MGO is therefore taxed more favourably compared to auto-diesel. I will not be introducing a tax rebate for users of MGO.