Increase in diesel rebate scheme to absorb carbon tax recognition that hauliers are essential users of diesel

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As part of Budget 2020, the Minister for Finance, Paschal Donohoe announced an improved diesel rebate scheme, afforded to licenced haulage operators as essential users of diesel. The improved scheme will offset the increase in diesel prices as a result of the new carbon tax also announced as part of this budget’s tax measures.

The Irish Road Haulage Association welcomed the decision to improve the diesel rebate scheme and that Government recognises that diesel remains the essential fuel for the industry at present and for some time to come.

Verona Murphy, President of the Irish Road Haulage Association, commented on the issue: “It was critical that the Government, in bringing in a carbon tax, enabled our members to offset this increase through our diesel rebate scheme. In doing this, the Government has recognised that diesel continues to be the only viable and readily available fuel type but is also the most cost effective, carbon and energy efficient fuel for use in HGVs.”

Ms. Murphy, who was honoured last week at the annual Fleet Transport Awards, with the Services to the Transport Industry accolade added; “The Government has made it clear that the purpose behind the possible introduction of carbon tax and diesel price equalisation is to nudge people and business towards electric vehicles and other alternatives to diesel. There is no readily available alternative to diesel for the haulage industry at present. Thatsaid, there is a solution to the Climate challenge that is readily available and that is Euro 6 Diesel engine. This is why diesel remains the long-term fuel type for most of the European truck manufacturers. They have made it clear to us that they are confident diesel will continue to meet new targets being set for the future and for decades to come until electric eventually becomes a viable option.”