Why We Need an Expert Group on Fuel Pricing Policy — and Why You Should Back It
By Kevin McPartlan, CEO, Fuels for Ireland
Over the past two years, Fuels for Ireland has been pressing the case for something that I believe is long overdue: an expert group to review how taxation and other Government policies impact the retail price of fuels for transport and heating.
This isn’t just an abstract exercise. It’s about the future of your business, the viability of forecourts across the country, and the livelihoods of the people who work in them. It’s also about making sure that the State’s approach to the energy transition is fair, reasonable, and sustainable for everyone — not just for those who can afford to make big changes to their vehicles or heating systems right now.
A sector that already delivers
Every litre of fuel we sell makes a significant contribution to the State’s finances. Between excise duty, VAT, carbon tax, and statutory levies such as the National Oil Reserves Agency (NORA) levy and the Better Energy Levy under the Energy Efficiency Obligation Scheme (EEOS), our sector delivers an estimated €6 billion every year into the Exchequer.
We also provide employment for around 30,000 people, with jobs spread through every town, city and rural community in Ireland. And our forecourts are more than just fuel pumps — they are vital retail and service hubs, particularly in smaller towns and villages.
Transition without fiscal foresight?
We at FFI fully support the energy transition. Our members are investing heavily in renewable liquid fuels like HVO and bioethanol, expanding EV charging infrastructure, and preparing for future fuels.
But in almost every policy discussion I’ve seen, the focus has been on how taxes and levies can encourage or discourage certain technologies and behaviours. Far less attention has been paid to the flip side of that coin — the impact these measures have on the actual cost of energy, on who bears those costs, and on the long-term stability of State revenues.
This is not just a matter of economics. The reality is that those who are least able to afford a switch to new technology — from internal combustion engine to electric vehicles, or from oil-fired heating to heat pumps — are being left behind. Their bills are increased in the name of “encouraging” them to switch, but for many, those options are simply out of reach. In practice, they are paying more and more to subsidise wealthier households who can afford to cut their heating and transport costs through upgrades. Fuels for Ireland is calling for a coherent approach and a dedicated tax group for fuel pricing policies.
It’s not just about tax
When most people hear “fuel prices” and “Government policy” in the same sentence, they think of fuel duty or carbon tax. But there are other significant factors baked into the pump price:
- Renewable fuel obligations such as the Renewable Transport Fuel Obligation (RTFO) and the forthcoming Renewable Heat Obligation (RHO).
- The EEOS/Better Energy Levy, which obligated parties recover through fuel prices.
- The NORA levy, currently set at 2cpl, which funds our national strategic fuel reserves and provides resources for the Climate Action Fund.
Each of these measures has a purpose, but they all come at a cost. That cost lands with motorists, home-heating oil customers, and — inevitably — with the businesses that serve them.
The North–South price gap
Nothing illustrates the need for a comprehensive review more clearly than the fuel price gap between Northern Ireland and the Republic.
Right now, industry data shows that fuel in Northern Ireland is around 20 cents per litre cheaper than in the Republic. For an average 60-litre tank, that’s a saving of €12.
For home-heating oil, the gap can be €150 to €185 per 500 litres.
The reasons are complex: differences in excise, VAT, and levy structures; currency fluctuations; and — importantly — higher renewable fuel obligations in the Republic, meaning our petrol and diesel carry more compliance cost than theirs.
The consequences are straightforward and damaging to the ROI industry:
- Significant volumes of fuel sales — and the associated tax revenue — are leaking across the border.
- Forecourts in border counties are losing customers and, in some cases, closing altogether.
- And those who cross the border to fill up rarely stop at the forecourt — they often do the rest of their shopping there, taking advantage of generally lower retail prices. That’s more lost business for retailers here at home.
Three principles for a fair approach
The Expert Group we are calling for would be tasked with developing a coherent approach to fuel pricing policy, built on three core principles:
- Revenue stability — ensuring the State has a fair, reliable, and predictable income from transport and heating fuels during and after the transition.
- Support for the transition — designing fiscal policy that differentiates between fossil and renewable fuels, while staying technology-neutral in principle and incentive-aligned in practice.
- Affordability and fairness — protecting essential users and those with no realistic alternative from being overburdened, and preventing a situation where the least well-off pay for the decarbonisation of the better-off.
Who should be at the table
We believe the Expert Group should bring together all the relevant expertise and perspectives, including:
- Department of Finance and Revenue Commissioners
- The climate and energy policy department (currently DECC/D/CEE) and Department of Transport
- SEAI, NORA, and the Parliamentary Budget Office
- ESRI/academic energy economists and CSO (for data)
- Consumer advocates, fuel-poverty experts, and regional/border economy representatives
- Industry — including Fuels for Ireland, forecourt retail, freight, and maritime fuels
- Environmental experts in lifecycle carbon accounting, renewable fuel sustainability, and climate policy integration
Why it matters to you — and what you can do
This is not just about high-level policy. It’s about your business and your community. If you operate a forecourt, every element of Government policy that influences fuel prices affects your competitiveness, your turnover, and your customers’ choices.
Without a comprehensive review, we risk letting these policies develop in silos, with no one looking at the combined effect. That’s bad for business, bad for consumers, and bad for the State’s revenue base.
The Budget in October is a critical moment. We want the Minister for Finance to announce the establishment of this Expert Group in Budget 2026. That won’t happen unless there’s political will behind it — and that’s where you come in.
I’m asking you to contact your local TDs and Senators before the Budget. Tell them you support the creation of an Expert Group on Fiscal Policy and Fuels. Tell them why it matters to your business, your employees, and your customers.
Together, we can make sure this issue is not overlooked, and that the decisions shaping our future are grounded in evidence, fairness, and common sense.
