Motor Fuels
Dail Éireann — 2026-09-30
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Barry Ward (FG), Dún Laoghaire

I thank the Minister of State. I acknowledge what she has said. I note what she said about the commitment in the programme for Government to examine taxation in relation to HVO. I agree with her in relation to EVs, and I welcome that EVs were the more sold vehicles in 2025. I presume, and hope, that this will be even more the case in 2026.
In relation to carbon tax, I acknowledge what the Minister of State said regarding it not applying to biofuels, as is appropriate. The notion that this is the only incentive that we are really willing to countenance to encourage people to use HVO is, I think, shortsighted. This is particularly the case if we are going to be talking in the budget next week about reducing carbon tax generally to alleviate the burden on individuals and households. If that is the case, then we will be eradicating the incentive that is there to use HVO. When we have HVO as a fuel that emits less carbon, 90% less carbon, and reduces harmful gases like nitrous oxides and carbon monoxide, as well as soot, there is so much behind the idea that we should incentivise the use of HVO.
I do not think it is enough to say, then, that the incentive will be the widening gap over time, as the carbon tax increases, between ordinary, standard auto diesel and biofuels or mixes with HVO. We can take positive action now. We can reduce the mineral oil taxation when it comes to biofuels, particularly in the case of HVO. We know that is something that will directly impact our attempt to meet our climate objectives in terms of reducing emissions and to encourage people to use HVO, which is a much better and sustainable fuel and one we can somewhat control in a way we cannot control the imported petrochemical products that come from the Gulf and other parts of the world.
An obvious track is available to us next week. If we actually take the step of saying that HVO is something that people should be using, it will benefit everyone. It will benefit the State, the environment and the individual citizen. We have an opportunity next week to do that. It will be a real missed opportunity if we do not, and it does not make sense if we do not do so.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-09-30/debate/main
Retrieved: 2026-10-05T01:00:59+00:00
Sitting date: 2026-09-30