Revenue is advising farmers that if they bring a quantity of agri-diesel from the north to the south – that is not in the tank of a tractor – they will be liable for the “appropriate excise duty”.
Earlier this month there was an increase of 4c/L on petrol, 3c/L on diesel, and 1.5c/L on marked diesel (also known as marked gas oil (MGO) or agri/farm diesel) as the Government partly restored excise duty on fuel.
A further increase of four cent/L on petrol, three cent on diesel, and 1.5c on marked gas oil is planned for August.
According to Revenue, current average retail prices for agricultural diesel – known as green diesel in the south and red diesel in the north because of the markers that are added to tackle fuel laundering -are “just under three cent/L less in Northern Ireland than in the state”.
In a statement to Agriland, Revenue said that cross-border “price differentials can give rise to fuel tourism”.
It said this is because people cross the border “to avail of cheaper retail prices”.
Agri-diesel
Revenue outlined that “where an individual refuels an agricultural tractor in Northern Ireland with ‘red diesel’ and brings that fuel into the state, no MOT (agri-diesel) compliance issues arise”.
It added: “However, any commercial movements into the state of fuels intended for reduced rate purposes must be marked in accordance with national law and the appropriate excise duty paid to Revenue.
“This means that it is not permitted to bring ‘red diesel’ into the state from Northern Ireland, other than the quantity that is present in the standard fuel tank of an agricultural tractor on entry into the state.”
It has advised that it routinely carries out roadside checkpoints to “detect the misuse of marked mineral oil”, including the transport of fuel across the border where the appropriate mineral oil tax liability has not been paid.
“Revenue’s actions include risk-based, targeted sampling programmes based on supply chain reporting obligations for suppliers and retailers,” it detailed.
Price rises
Minister for Finance, Michael McGrath, told the Dáil this week that he would continue to “monitor and review” the position in the coming months in relation to the final phase of excise rate restorations scheduled to take place in August 2024.
The minister said that both he and the government were “conscious of the implications of fuel costs for all sectors of society”.
He also warned that there are further fuel price rises in the pipeline in relation to the carbon component rates of Mineral Oil Tax on marked gas oil (green diesel) which are legislated to come into effect on May 1, 2024.
The amount charged per tonne of carbon dioxide emissions from non-auto fuels will increase from €48.50 to €56.00.
“This increase, inclusive of VAT, will add 2.3c/L to marked gas oil.
“Increases to carbon component rates of Mineral Oil Tax on petrol and auto-diesel are legislated to come into effect on October 9, 2024 when the amount charged per tonne of carbon dioxide emissions increases from €56 to €63.50.
“The October 9, 2024 rate increases will add, inclusive of VAT, two cent/L to petrol and 2.5c/L to auto-diesel,” the minister outlined.