Thomas Pringle (Donegal, Independent)
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204. To ask the Minister for Finance the measures that are available to the haulage industry for reductions in fuel costs because of the current crisis; and if he will make a statement on the matter. [55961/22]

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. The Government has acted to limit the impact of increased prices on households and businesses via reductions in VAT, excise and income tax, targeted welfare supports, reduced public transport fares and the provision of energy credits to households.

On 10 March 2022, to alleviate the impact of rising auto fuel prices on households and businesses, the Government introduced VAT inclusive Mineral Oil Tax reductions of 15 cent per litre on diesel. A further reduction of 1 cent per litre (VAT inclusive) applied from 1 April 2022 to offset the impact of anticipated increased prices as a result of the increase in the Biofuel Obligation Scheme administered by my colleague, the Minister for Transport and Environment, Climate and Communications. These reductions were due to expire on 12 October 2022 but in recognition of the continued impact of high fuel costs, I have extended the reductions until 28 February 2023. While the Government remains committed to the carbon tax trajectory, in recognition of current fuel prices Budget 2023 also provided a reduction in the NORA levy to a nominal amount which will offset the impact of carbon tax increases on auto fuels. This measure will also last until 28 February 2023.

According to the European Commission weekly oil bulletin, the average national price for a litre of diesel in Ireland as of 7 November 2022 was €2.03. In recent weeks there has been an increase in the retail price of diesel affecting the national average price across Europe. The increase in price arises from supply side issues affecting the pretax price of diesel.

While garages are not committing an offence by charging a higher price than competitors, all garages must operate within the bounds of consumer protection and competition law in relation to their pricing policies and practices.

The Competition and Consumer Protection Commission (CCPC) is the statutory independent body responsible for the promotion of consumer rights and the enforcement of consumer law. The CCPC provides information on consumer rights and enforces consumer protection laws, including rules on pricing and deceptive trading practices.

If an individual believes that a breach of their consumer rights has occurred, they may make a complaint directly to the business concerned, but also to the CCPC. The CPCC provides advice and guidelines on the process of making a complaint. Full information is available at: www.ccpc.ie

With regard to specific supports for the haulage sector, the Government has put in place several measures to ease cost pressures including:

- 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 Diesel Rebate Scheme (DRS) has been in operation since 2013 and remains available to qualifying road haulage and passenger transport operators. The DRS operates on a sliding scale basis, whereby the rebate kicks in when the retail price of diesel exceeds €1.00 VAT exclusive and the repayment amount increases gradually as the retail price increases up to a maximum repayment amount of 7.5 cents per litre. Budget 2020 provided for a significant enhancement to the scheme whereby the marginal rate of compensation was doubled at prices over €1.07 VAT exclusive. This enhancement has been maintained to date in light of the current challenges facing sectors of the economy.

- VAT registered businesses are also entitled to recover the cost of VAT on the purchase of diesel, used in the course of their business, as is the case with most business costs.

- The extended excise reduction on diesel also benefits hauliers.

The Government does not have infinite resources but through the measures outlined it has responded as best it can to help to ease the impact of high fuel prices.