The group says the levy discriminates against households, farms and businesses in rural Ireland.

At present, the levy, which is the sole contributor to Ireland’s Climate Action Fund, is only paid by people who use petrol, diesel or kerosene to heat their homes at a rate of 2c per litre, which FFI says disproportionately impacts households, farms and businesses in rural Ireland.

The charge, known as the National Oil Reserves Agency (NORA) levy, was originally put in place to fund the activities of NORA, the agency which maintains Ireland’s oil reserves, and it amounts to 2c on every litre of oil. 

The ‘unjust’ charge is now being used solely to fund the Government’s Climate Action Fund, FFI says, meaning other energy consumers like those with gas heating or who use solid fuel do not pay into the Climate Action Fund.

‘Unfair levy’

Speaking on behalf of FFI members, CEO Kevin McPartlan said: “The NORA levy, which is subject to a European Commission State aid complaint, is being unfairly added to the price at the pump resulting in our consumers continuing to be the only funders of the Climate Action Fund in this Budget. 

“The failure of this Government to stop this discrimination, against mostly rural consumers, flies in the face of their commitments to ensure Ireland reduces its carbon emissions by 2050.

“Minister Donohoe could have helped those consumers who have no choice but to use their cars to get to work or school, our farming community who produce food to export around the world and those living in rural Ireland who heat their homes with oil because no alternatives exist, by removing this levy but he failed to.

“FFI members are proud to play our role in tackling climate change, as set out in our strategy to make our industry carbon neutral by 2050, but our consumers can no longer be discriminated against today.”

Fuels for Ireland brings together companies involved in the importation, distribution and marketing of petroleum products and low carbon liquid fuels, and is made up of Applegreen, Circle K, Corrib Oil, Emo, Inver Energy, Irving Oil, LCC, Maxol, Top Oil and Valero.

The National Oil Reserves Agency is responsible for ensuring that Ireland meets its obligations under the relevant EU Legislation and International Energy Agency (IEA) rules. The NORA levy is collected by oil companies from their consumers, and currently stands at 2 cents per litre.

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The move from Irving Oils to take-over from Top Oils could be seen as a logical step to many within the industry, as the company has been pushing for rapid expansion in the through Europe for several years.

However, it would seem than rather than a complete buy-out the companies will be working together to enhance the current brand, rather than implementing new business models.

The potential deal that has been set in place for Irving to acquire Top Oil could mean that we see a partnership of two of the biggest oil companies currently within Ireland. Top Oil have refused to comment on the reasoning behind why they let the acquisition go ahead, however, logic would dictate that it is due to it being a sensible way to expand their services, whilst holding on to their brand.

With a terminal at Dublin Port, 20 inland depots, 200 dealer and company-owned forecourts and 20 dedicated fuel card sites, Top Oil provides a reliable supply of fuel products to the country’s businesses and consumers, and with Irving partnering alongside them, they could enhance their resources.

From Irving’s point of view, it will enable them to further expand their business across the Atlantic basin, giving them a tighter grip on the Irish oil market.

Ian Whitcomb, president of Irving Oil has stated he excited to work with Top Oil and that this is a likely progression. Commenting: “We have worked hard to build strong customer relationships and establish meaningful community partnerships in Ireland and are delighted to continue to grow our business in this area. It’s a natural fit for us.”

The sale is subject to approval by the Competition and Consumer Protection Commission in Ireland, however, if the deal goes ahead branding throughout Ireland sites will remain as Top Oil and staff will be maintained. This is a positive note for the local economy surrounding Whitegate refinery.

Adding to the rhetoric of this being a partnership, Arthur Irving, chairman of Irving Oil said that: “We are proud to be doing business in Ireland and are looking forward to working with everyone at Top Oil. We’re excited about the future.”

This partnership could shake-up the oil industry in Ireland, but the Competition and Consumer Protection Commission could make a ruling on the acquisition. What this means for Ireland is still to be seen, however this is a statement of cohesion from two of Ireland’s fuel giants.

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