The excise reductions on fuel have been extended in Budget 2023. This is 21c/l in respect of petrol, 16c/l for diesel and 5.4c/l for green diesel.
The 9% VAT rate is to continue for gas and electricity. They will be extended until 28 February 2023.
Details of the budget were announced on Tuesday by Minister for Finance Paschal Donohoe and Minister for Public Expenditure and Reform Michael McGrath.
As part of this, it was announced that the Government is going ahead with its annual carbon tax increase of €7.50/t, going from €41 to €48.50 from 12 October.
This will mean that there will be an increase of just over 2c/l (VAT inclusive) on petrol and diesel at the pumps.
However, the Government is proposing to offset this carbon tax increase with a reduction to zero of the National Oil Reserves Agency (NORA) levy.
This NORA levy is collected at a rate of 2c/l (VAT exclusive). This means that the price at the pump will not go up as a result of taxes or levies.
It was also announced that there will be no changes to VRT for cars or commercial vehicles.
Electric vehicle grant
Meanwhile, the Society of the Irish Motor Industry (SIMI) noted that €110m is being provided towards making the switch to electric vehicles.
Specific grant support, worth up to €5,000, is being provided for the continuation of the purchase grant scheme for electric passenger cars. However, there will be a gradual reduction in the grant from July 2023.
There will also be a continuation and expansion of the home charging infrastructure scheme.