Dáil Éireann Debate, Tuesday - 26 September 2023
144. Deputy Peadar Tóibín asked the Minister for Transport if it is the policy to seek increases in fuel excise on petrol and diesel as a demand management strategy to reduce the number of vehicles on the road; if so, how many times he sought Government approval for increases in fuel excise; the number of increases he has sought; from what period; and if he will make a statement on the matter. [41430/23]
View answerAs the Deputy will be aware, this Government introduced a package of measures last year to lessen the financial impact of increased fuel prices on individuals and business including a reduction in the rate of excise paid on petrol and diesel - these rates remained in place until May 2023.
In its Tax Strategy Group paper on Climate Action, published in July, the Department of Finance Budget 2023 Quality of Life assessment found the excise rate reduction to be a climate negative measure. Excise on transport fuels is governed by the Energy Tax Directive (ETD) which is currently the subject of a revision by EU Ministers for Finance. Ultimately, any changes to fuel excise will be a matter for Government.
As regards the development of a Demand Management Strategy, the Climate Action Plan 2023 agreed by Government committed to a 20% reduction in vehicle kilometres travelled as part of the overall effort to halve transport emissions by 2030. To ensure the efficiency of the transport system into the future, and with a strong emphasis on co-benefits for health, air quality, road safety and placemaking, an extensive suite of measures, including fiscal measures, are currently being considered as part of a process to develop a new National Demand Management Strategy for transport. The Strategy, which will be high-level in nature, will define the type of measures that may be deployed nationally. The strategy will be the subject of a public consultation early in 2024, subject to approval by Government.
