I have looked at this issue in terms of both access and cash flow in relation to the diesel rebate scheme. As the Deputy knows, the diesel rebate scheme is a state aid that provides qualifying road haulage and passenger transport operators with a partial repayment of mineral oil tax paid on auto diesel. The scheme operates in accordance with the EU's energy tax directive, as it must, and with the general block exemption regulation on state aid. In 2025, almost €40 million was paid out under the scheme, providing targeted support to the road haulage and passenger transport sectors.
The diesel rebate scheme rate of repayment is linked to the average retail price of auto diesel, based on data from the CSO. A 7.5 cent rebate has applied to all claims over the period from quarter 1 of 2021 to quarter 4 of 2025. In response to the current fuel crisis, I recently increased the repayment cap from 7.5 cent per litre to 12 cent per litre. This enhanced repayment rate applies to claims in respect of fuel purchased from 1 January to 30 June this year.
The Deputy raised a genuinely interesting point regarding the point at which the rebate is applied. I have been looking into this. I am advised by Revenue that the operation of the diesel rebate scheme on a remission basis at the pump is not compatible with the legal basis of the scheme as repayment rates are determined on an ex-post basis. I looked at whether the scheme could be redesigned but, even if the scheme were redesigned, the application of mineral oil tax reductions at the pump to qualifying transport operators would require the introduction of complex real-time validation systems and shift compliance risks to fuel retailers. For these reasons, Revenue considers that improvements are more appropriately focused on administrative efficiencies to lead to faster repayments. Revenue encourages customers to file claims immediately when the period to claim opens, which I believe many do, and to ensure that claims are completed correctly and that supporting documentation is available if requested by Revenue.
Revenue is mindful of the financial impact of the current increase in fuel prices and the importance of the rebate scheme to licensed operators. It will work with claimants who are unable to obtain tax clearance on a case-by-case basis. Where a claimant has tax clearance and yet has some tax liabilities, Revenue will process any claim and offset any refunds against liabilities. I will have another chance to come in but, as is always the case with cash flow issues, it is important that there is engagement with Revenue. I know that Revenue will be constructive in that regard.