Gas Prices Rise, Electric Vehicle Charging Costs Unchanged
fuel Costs Rise, but EV Incentives Extended in Latest Budget
Table of Contents
Carbon Tax Increases Impact Pump Prices
Motorists will see a slight increase at the fuel pumps following a rise in carbon tax. The tax on carbon dioxide emissions for all fuels increased from €63.50 to €71 per tonne, translating to roughly a €1.28 increase for a 60-litre petrol tank and €1.48 for diesel.This change takes effect from midnight, October 7, 2024.
Electricity VAT Rate Held Steady
Good news for electric vehicle (EV) owners: the reduced 9% Value Added Tax (VAT) rate on electricity has been extended, shielding EV charging costs from a planned increase to 13.5% until at least the end of 2030.This measure aims to support the continued adoption of electric vehicles.
Vehicle Tax Reliefs Extended
The government has also opted to extend the €5,000 relief on Vehicle registration Tax (VRT) for EVs, now running until the end of 2026. this provides a continued financial incentive for consumers considering a switch to electric.
New Benefit-in-Kind (BIK) Category for EVs
A meaningful development for company car drivers is the introduction of a new ‘A1’ category for zero-emission vehicles within the Benefit-in-Kind (BIK) tax system. This new category offers reduced BIK rates, ranging from 6% to 15%, dependent on annual business mileage. This change is designed to encourage the uptake of EVs within company fleets.
Furthermore, the existing €10,000 relief on BIK for cars emitting less than 180g of CO2 per kilometer, and for all vans, has been extended until the end of 2028. The highest mileage band for BIK calculations has also been permanently set at 48,001 kilometers, effective from January 1, 2025.