An increase in the carbon tax rate on diesel will be neutralised.
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Minister for Finance Paschal Donohoe extended excise reductions on fuel until 28 February 2023.
This extended reduction equates to 21c/l for petrol, 16c/l for diesel and 5.4c/l for green diesel. The fuel measures are part of a suite of excise reduction extensions, which will cost the State €117m.
Budget 2023 will also see an increase in the carbon tax rate from €41 to €48.50 per tonne of CO2. This will apply to auto fuels from 12 October 2022 and all other fuels from 1 May 2023. It will equate to a 2c/l increase on the cost of petrol and diesel.
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However, the Government says this is to be offset by a 2c/l cut to a different fuel levy – the national oil reserves agency levy.
This will offset the tax rise, leaving pump price increases effectively neutralised.
Overall, the increase in the carbon tax rate will generate €151m next year.
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Minister for Finance Paschal Donohoe extended excise reductions on fuel until 28 February 2023.
This extended reduction equates to 21c/l for petrol, 16c/l for diesel and 5.4c/l for green diesel. The fuel measures are part of a suite of excise reduction extensions, which will cost the State €117m.
Budget 2023 will also see an increase in the carbon tax rate from €41 to €48.50 per tonne of CO2. This will apply to auto fuels from 12 October 2022 and all other fuels from 1 May 2023. It will equate to a 2c/l increase on the cost of petrol and diesel.
However, the Government says this is to be offset by a 2c/l cut to a different fuel levy – the national oil reserves agency levy.
This will offset the tax rise, leaving pump price increases effectively neutralised.
Overall, the increase in the carbon tax rate will generate €151m next year.
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