Written answers
Wednesday, 19 March 2025
Department of Finance
Tax Code
Pearse Doherty (Donegal, Sinn Fein)
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386. To ask the Minister for Finance to outline the percentage additional cost that will be added to petrol and diesel by 2030 as a result of the carbon tax; and if he will make a statement on the matter. [10750/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the VAT inclusive percentage additional cost to a litre of petrol and auto diesel arising from the scheduled Mineral Oil Tax Carbon Charge increases to 2030, is estimated at 5.83% and 6.85% respectively.
The table below sets out the percentage increase using a benchmark retail price per litre for petrol (€1.781) and auto diesel (€1.754), as at January 2025 as published by the Central Statistics Office. The current rate of Carbon Tax is €63.50 per tonne of CO2 emitted and is legislated to increase to €100 per tonne by 2030.
It should be noted that yearly and cumulative increases are rounded to the second decimal place.
| Year | Yearly Increase over January 2025* - Petrol | Cumulative Increase over January 2025** - Petrol | Yearly Increase over January 2025* - Diesel | Cumulative Increase over January 2025** - Diesel |
|---|---|---|---|---|
| 2026 | 1.20% | 1.20% | 1.41% | 1.41% |
| 2027 | 1.20% | 2.40% | 1.41% | 2.82% |
| 2028 | 1.20% | 3.60% | 1.41% | 4.22% |
| 2029 | 1.20% | 4.79% | 1.41% | 5.63% |
| 2030 | 1.04% | 5.83% | 1.22% | 6.85% |
**Cumulative percentage increase for each year relative to January 2025 price.
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