There are four forms of tax on fuel. One is excise duty, which is charged by the litre. The second is Carbon tax, which is charged by the tonne. The third is the ‘NORA’ levy (National Oil Reserves Agency) levy which is 2 cent per litre. All three of these taxes are charged in the same way in that they are fixed amounts per litre and do not fluctuate as the overall price increases. All three are subject to VAT at 23%.
Carbon Tax works out at 5.586 cent per litre of petrol, and 6.517 cent per litre of diesel. Both of those figures have VAT at 23% added to them.
Changes since the emergency budget of 2008:
October 2008 8 cent per litre was added to excise duty on Petrol.
April 2009 5 cent per litre was added to excise duty on Diesel.
December 2009 Carbon Tax: – 4.2 cent Petrol and 4.9 per litre Diesel
December 2010 Excise duty was increased by 4 cent per litre on Petrol and 2 cent on Diesel.
December 2011 Carbon tax was increased by 33% (from €15 to €20 per tonne) which including VAT is 1.4 cent Petrol & 1.6 cent Diesel.
December 2011 Vat increases from 21% to 23%. Vat is always added after all other taxes.
Pre-budget December 2012
Excise duty figures are provided by the Department of Finance with the Carbon Tax included. The current rates are:
Petrol: 587.71 per 1,000 litres
Diesel: 479.02 per 1,000 litres
The fourth is VAT itself, which is of course a percentage and therefore does fluctuate as the price increases. A little confusingly this means that the more expensive that fuel gets, the less of a percentage of the total that is taken in tax even though the motorist is paying more tax (via VAT)
On current prices*, the rate of taxation on both fuels is as follows:
Petrol : Pump price €1.612
Excise including carbon 58.771c
Total taxes: 90.971c
Pre-tax price 70.229c
Tax as % 54.5%
Diesel : Pump price €1.560
Excise including carbon 57.902c
Total taxes: 89.072c
Pre-tax price 66.928c
Tax as % 57.1%
*AA has a monthly index of fuel prices, out 2nd week each month. In fact right now the AA estimates prices at €1.60 for petrol and €1.56 for diesel