Petrol and diesel prices are set to rise from next Wednesday, October 9th, due to the ongoing increases in the rate per tonne of carbon dioxide.
In his budget speech, the Minister for Finance Jack Chambers confirmed the rate will increase from €56 to €63.50 next week for petrol and diesel – and from May 1st, 2025 on all other fuels.
The changes will mean an additional €1.20 per full tank of 60 litres for motorists, according to Fuels for Ireland.
There was better news for motorists with an end to the Motor Insurers Insolvency Compensation Fund levy - currently 1 per cent on premiums – from January 1st, benefitting up to 2.2 million policyholders.
Amongst the other Budget 2025 changes to impact motorists, amendments to the Vehicle Registration Tax (VRT) regime for electric commercial vehicles will see them qualify for the €200 rate. Currently, due to the heavy battery weight, many electric vans exceed the 3.5 tonne limit for the lower rate of tax.
By changing to an emissions-based approach for VRT on these commercial vehicles, it should mean the price of new electric vans will come into line with their diesel alternatives. The new system will provide for a lower 8 per cent rate for category B vehicles with CO2 emissions of less than 120gms per kilometre with a view to encouraging the purchase of such vehicles.
On Benefit-in-Kind tax, the €10,000 temporary reduction in the original market value (OMV) of vehicles (including vans) with emissions below 180g/km will be extended until December 31st, 2025.
For an employee with an electric company vehicle, they will have an overall BIK relief of €45,000 in 2025, comprising the current €35,000 electric vehicle specific relief, plus the additional temporary universal relief of €10,000. Mr Chambers also announced a BIK exemption for the provision of electric vehicle chargers at the home of company employees and directors.
The budget also included a reduction in the emissions level to qualify for vehicle capital allowances for company cars. From January 2027, cars must emit less than 141gms/km to qualify.
“This measure is designed to incentivise the uptake of EVs in the company car sector, which will over time assist the acceleration of a second-hand EV market,” Mr Chambers said.
