Fuels for Ireland has produced a very interesting graphical representation of how the prices of a litre of diesel and petrol are made up, including the latest carbon tax increase. 

Kevin McPartlan, CEO of Fuels for Ireland says, “Fuels for Ireland is urging the government to establish an Expert Group on Taxation to address the increasing burden of fuel taxes on Irish motorists. The recent carbon tax increase announced on Budget Day last week adds an additional 2.1c per litre of petrol and 2.5c per litre of diesel. Since this government took office in 2020, an additional €12 in taxes has been added to the cost of filling a tank of fuel. Irish motorists are now paying more in taxes on fuel than those in any other EU State.”

Fuels for Ireland is calling on all political parties to commit in their manifestos to the establishment of an expert group. This group would review taxation on transport and heating fuels, with the aim of creating a model that supports the transition to sustainable energy, ensures fair revenue to the State, and keeps fuel costs affordable for all.

Ireland now has the highest level of fuel taxation in the EU, with over 55% of the cost of fuel going directly to the government. The breakdown is: 

Petrol (€173.13 per litre):

• 31.3% Excise Duty
• 18.7% VAT
• 8.5% Carbon Tax
• 1.1% Nora Levy
• 0.7% Better Energy Charge
• 39.7% Fuel Supply Costs and Others

Diesel (€166.47 per litre):

• 26.6% Excise Duty
• 18.7% VAT
• 10.2% Carbon Tax
• 1.1% Nora Levy
• 0.7% Better Energy Charge
• 43.7% Fuel Supply Costs and Others