Budget 2024: Relief for motorists as fuel price hikes deferred and Electric Vehicle relief extended

MOTORISTS facing increasing fuel prices on their daily commutes received good news as Finance Minister Michael McGrath announced an expected deferment of the restoration of the excise duty on petrol and diesel in the forecourts until April and August of next year.

The announcement that the restoration of the last remaining eight cent on the litre of diesel would not now go ahead on October 31 as scheduled, but would take place in two equal segments on April 1 and August 1 of next year was one of a number of measures aimed at motorists.

However, although the expected increase in carbon tax from €48.50 to €56 per tonne, which took effect from midnight last night, would lead to increases in fuel prices, they are not the order of eight cent per litre.

In line with the Government’s commitment to reducing emissions, there were also a number of measures aimed at making it more attractive to purchase electric vehicles.

Mr McGrath announced that he was extending the Vehicle Registration Tax relief on electric vehicles for a further two years to the end of 2025, and this would apply to vehicles with a value of up to €50,000.

The measures aimed at motorists were welcomed by the Society for the Motor Industry, which said the provisions aimed at electric vehicles provided stability and clarity to the industry “at a time of great uncertainty”.

“The EV supports underline the Government’s commitment towards the electrification of the national fleet, which is of critical importance as we strive to meet our emissions-reduction goals,” said SIMI director general Brian Cooke.

“We still await clarification of the ongoing investment in both the charging infrastructure and the SEAI purchase grants, which are also vital to the ongoing success of the EV project.”