Michael Fitzmaurice (Roscommon-Galway, Independent)
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282. To ask the Minister for Finance the percentage of each of the different costs which make up the price the consumer pays for petrol, diesel and agricultural diesel at the pumps; and if he will make a statement on the matter. [51506/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The price of fuel is determined by a number of factors such as global market dynamics, costs of labour, exchange rates, taxation as well as wholesale and retail pricing policy practices which may include additional pricing to cover transport and distribution costs.

Ireland’s taxation of fuel is governed by European Union law as set out in Directive 2003/96/EC, commonly known as the Energy Tax Directive (ETD). The ETD prescribes minimum tax rates for fuel with which all Member States must comply. ETD provisions on mineral oils are transposed into national law in Finance Act 1999 (as amended) and this Act provides for the application of excise duty, in the form of Mineral Oil Tax (MOT), to specified mineral oils that are used as motor or heating fuels. MOT is comprised of a non-carbon component and a carbon component. The carbon component is commonly referred to as carbon tax and the non-carbon component is often referred to as “excise”, “fuel excise” or “fuel duty”. It is important to note that both components of MOT are excise.

In accordance with the Value-Added Tax Consolidation Act, 2010, VAT is chargeable on petrol and auto-diesel at the standard rate, currently 23%, on the total amount which the supplier is entitled to receive including taxes, duties, levies and charges but excluding the VAT itself. A levy is also charged on petrol and diesel to cover the costs related to maintaining security of oil supplies. While both MOT and VAT are administered by Revenue the levy is administered by, and paid directly to, the National Oil Reserves Agency (NORA). At Budget 2023, I announced a reduction in the NORA to help offset increases in MOT carbon component rates, which came into effect on October 12th. The NORA levy currently remains at 2c/litre but its reduction to 0.01c/litre will be backdated to 12th October. The reduction does not impact directly on MOT rates, rather its offsetting effect will be on the pump price of relevant fuels. My colleague Eamonn Ryan, Minister for the Environment, Climate and Communications, is working with his Department and NORA to implement changes to the NORA levy.

The current MOT rates applying to petrol and auto-diesel are €483.34 and €425.45 per 1,000 litres respectively. Diesel used for certain purposes, for example in agricultural machinery, may qualify for a reduced rate of MOT. Such diesel must be marked with prescribed fiscal markers and is referred to as Marked Gas Oil (MGO), green diesel or farm/agricultural diesel. A reduced VAT rate, currently 13.5% applies to MGO. The reduced rate of MOT that applies to MGO is currently €111.14 per 1,000 litres. Current MOT rates are published on the Revenue website at www.revenue.ie/en/tax-professionals/tdm/excise/excise-duty-rates/budget-excise-duty-rates.pdf.

The following table provides a breakdown of the taxes and levies applying to petrol, auto-diesel and MGO. Average retail prices are as per the EC Weekly Oil Bulletin of 13 October 2022 which uses prices based sourced on 10 October 2022 (prior to the carbon tax increase on 12^thOctober 2022).

*Rounding applies eg. MOT carbon on Petrol is €0.09487 but reads as €0.09 for ease of display.