Pump prices rise, but cost of plugging in remains untouched
Michael McAleer
Motorists are facing a rise of just over 2c per litre at the fuel pumps on the back of the increase in carbon tax charges, but motorists will be relieved that many reliefs for low emissions or electric vehicles were extended.
The increase in the rate per tonne of carbon dioxide emitted for all propellant fuels from €63.50 to €71 will see the cost of filling a 60-litre tank rise €1.28 for petrol and €1.48 for diesel.
While prices at the pumps are to rise from midnight, extending the nine per cent rate of VAT on electricity means that prices at the plugs will not be hit with the higher 13.5 per cent at least until the end of 2030.
Separately, the €5,000 relief in Vehicle Registration Tax (VRT) has been extended to the end of 2026.
A new category for benefit-in-kind (BIK) on company cars is being added for vehicles with zero emissions. The new A1 category introduces reduced BIK rates for electric vehicles, with rates of six to 15 per cent, depending on business mileage.
The Minister for Finance, Paschal Donohoe, also extended until the end of 2028 the current €10,000 relief on BIK applied to cars with CO2 emissions below 180g/km and all vans. The highest mileage band has also been permanently set at 48,001km from the start of next year.
