Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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138. To ask the Minister for Environment, Community and Local Government the current surplus in the National Oil Reserves Agency levy account; if the levy currently funds the holding of fuel stocks to assist in energy security in the event of a supply disruption as originally intended; if any portion of this surplus is intended to be redirected to the Climate Action Fund in Budget 2026; and if the Government will commit to a broader review of petroleum-related taxation in order to ensure the financial burden on consumers and businesses is proportionate and consistent with Ireland's energy security and decarbonisation objectives and is shared equally across all carbon emitting energy source. [54223/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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The National Oil Reserves Agency (NORA) is funded by a levy on the sale of oil products. Its revenue is used to fund the purchase and storage of Ireland’s strategic oil stocks in the event of a supply disruption, and other expenses of the Agency. NORA's Annual Report and Financial Statements for 2024 show that levy income for 2024 was €122,937,000.

The National Oil Reserves Agency (Amendment) and Provision of Central Treasury Services Act 2020

was enacted on 1 August 2020. This legislation facilitates the transfer of NORA Levy funds to the

Climate Action Fund and is facilitated by my Department. €100 million was transferred by NORA to the Climate Action Fund in 2024. I anticipate a transfer of approximately €96m in 2025.

As the Deputy will be aware, taxation of petroleum products is a matter for the Minister of Finance. I am informed by my colleague, Minister Donohoe, that taxation of energy products is reviewed on an ongoing basis. Consideration of policy options has due regard to all relevant factors including the wider economic context, global energy market activity, consumer and business impacts, climate commitments and Exchequer impacts.

The taxation of petroleum-related products was most recently examined in the Tax Strategy Group paper on ‘Energy, Environmental and Vehicle Tax’, published by the Department of Finance in July. The Tax Strategy Group papers are published in advance of the Budget to facilitate informed discussion. They form part of the overall Budgetary and Finance Bill process which includes the National Economic Dialogue, the Budget Oversight Committee and the provision of pre-Budget submissions and engagement with specific groups and individuals. Tax policies relating to fossil fuels are kept under ongoing review by the Department of Finance.