Finance Bill 2026: From the Seanad Dail Éireann — 2026-07-08 ============================================================ Robert Troy (FF), Longford-Westmeath Ireland's diesel rebate scheme operates in accordance with the EU's energy tax directive and the general block exemption regulation on state aid. In 2025, almost €40 million was paid out under the diesel rebate scheme. The temporary enhancement to the diesel rebate scheme has been agreed by Government in light of the severe fuel price impacts that have arisen following the outbreak of conflict in the Middle East. It is a short-term and targeted measure that helps to ease the burden of households and businesses across the State by minimising the inflationary impact of fuel cost spikes for road haulage and bus passenger services during this challenging period. I recall that Deputy Doherty previously raised the issues with the operation of the diesel rebate scheme. I am advised that Revenue has had ongoing engagement with the representative bodies in relation to the diesel rebate scheme. Revenue highlighted that incomplete and incorrect claims had given rise to the delays, as it had to contact claimants to request that claims be corrected and resubmitted. In order to assist claimants to better understand the types of errors and omissions that gave rise to these earlier delays, Revenue prepared a new list of frequently asked questions, which was published on its website last month at the request of one of the representative bodies. Deputy Doherty's amendment to section 1 of the Bill proposes to extend the time period for this measure, with a maximum rebate of 12 cent per litre indefinitely. We have always stated that these decisions were made on a temporary support basis and must be responsive to macroeconomic and energy market variables. The extension of the diesel rebate scheme to the end of September is appropriate in light of the severe impacts of the fuel crisis caused by the conflict in the Middle East. However, we cannot ignore that the prices of diesel and petrol have fallen substantially in recent weeks and, as regards global markets, that the price of a barrel of crude oil has fallen from a peak of $120 in late April to approximately $80 today. It is also worth noting that the diesel rebate scheme is a fossil fuel subsidy, the phasing out of which has been called for by the OECD and the European Commission, among others. In the long run, fossil fuel subsidies serve to maintain an over-dependence on fossil fuels and to weaken our climate policy and energy security. The long-term objective should be to phase out these subsidies, not to enhance them on a permanent basis. As per Central Statistics Office, CSO, data, fossil fuel subsidies amounted to €4.67 billion in 2014. Ireland's dependence on fossil fuels leaves households and businesses exposed to prices that are subject to volatility due to international market forces and over which the Government has little, if any, control. The subsidisation of fossil fuels can distort market signals and reduce the incentive to save energy and transition away from fossil fuels. While understanding that the heavy goods vehicle, HGV, sector is a hard-to-abate sector, new electronically charged trucks and buses are becoming increasingly popular in Europe as a whole and particularly in countries such as Sweden and the Netherlands. In the UK, 32% of new buses registered in quarter 1 of 2026 and 6% of new trucks were electrically chargeable. In Ireland, the corresponding figures are 6% and 1%, respectively. Incentivising the long-term use of diesel runs contrary to Ireland's environmental ambitions and legally binding emissions targets and would extend the reliance on imported fossil fuels. For the reasons outlined, I do not propose to accept Deputy Doherty's amendment. Furthermore, the proposal creates a charge on the people. As an Opposition amendment cannot create a charge on the taxpayer, I cannot legally accept it. --- Source: Houses of the Oireachtas. Licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). The Official Report is revised after first publication; the fetch timestamp below identifies the version quoted. Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-07-08/debate/main Retrieved: 2026-09-14T01:01:07+00:00 Sitting date: 2026-07-08