Fossil fuel subsidies were €4.9 billion in 2023, up from €4.7 billion in 2022 and €2.8 billion in 2021. Higher levels in 2022 and 2023 occurred as a number of temporary Government support measures were introduced in response to rising energy prices.
Direct fossil fuel subsidies such as Household Energy Credits accounted for 23% of total fossil fuel subsidies in 2023, while indirect subsidies such as the VAT rate reduction on natural gas accounted for 77%.
In 2023, net energy taxes on petrol and road diesel were 53 cent per litre and 46 cent per litre, respectively. In 2021, before the temporary excise rate reductions were introduced, net energy tax on petrol was 63 cent per litre and net energy tax on road diesel was 53 cent per litre.
Consumers buying petrol paid an average effective rate of €225 per tonne of carbon dioxide emitted in 2023, an increase of €5 per tonne on 2022 and a 16% reduction on the 2021 rate of €269.
The average effective carbon rate on road diesel for consumers was €170 per tonne of carbon dioxide in 2023. This was an increase of €6 per tonne on 2022 and a drop of 13% from €196 per tonne in 2021.
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Statistician's Comment
The Central Statistics Office (CSO) has today (30 April 2025) published Fossil Fuel Subsidies 2023.
Commenting on the release, Clare O'Hara, Statistician in the Environment Division, said: "Total fossil fuel subsidies in 2023 were €4.9 billion, up from €4.7 billion in 2022, which in turn was an increase in value of €1.9 billion compared with 2021, when fossil fuel subsidies were €2.8 billion in current prices (See Figure 2.1 and Table 2.1).
Fossil Fuel Subsidies
In 2022 and 2023, a number of temporary measures were implemented by the Government in response to rises in energy prices. The temporary measures included direct subsidies to households and businesses to reduce energy costs, as well as tax rate reductions on fossil fuels such as petrol and diesel. The total amount in fossil fuel subsidies resulting from these measures was estimated at €1.1 billion in 2022 and €1.6 billion in 2023 (See Table 2.2).
Relative to modified gross national income (GNI*), fossil fuel subsidies went from 1.2% of GNI* in 2021 to 1.8% in 2022 and 1.7% in 2023 (See Figure 2.1 and Table 2.1).
Effective Carbon Rates
The average effective carbon rate of a fuel is the amount of energy tax, such as excise and carbon tax, paid by consumers per tonne of carbon dioxide emitted through combustion of the fuel.
The average effective carbon rate on petrol was up 2% to €225 per tonne of carbon dioxide in 2023 after falling by 18% in 2022. The road diesel rate rose by 4% in 2023 to €170 per tonne of carbon dioxide, following a 16% drop in 2022 (see Figure 1.1 and Table 1.1). Average effective carbon rates on other fuels including aviation gasoline, rail diesel, and marked gas oil used in agriculture and fishing also remained lower than the 2021 rates, as temporary excise and National Oil Reserves Agency (NORA) levy rate reductions implemented in 2022 and 2023 outweighed increases in carbon tax on these fuels.
The average effective carbon rate on jet kerosene went up 12% to €29 per tonne of carbon dioxide in 2023, while the average rate on fuels used for electricity generation rose by 4% to €78 per tonne of carbon dioxide. Both increases resulted from a rise in the average price at auction of EU-Emissions Trading System (ETS) permits.
The highest average effective carbon rate per tonne of carbon dioxide in 2023 was €225 for petrol. The average effective carbon rate for road diesel was €55 lower at €170 per tonne of carbon dioxide due to the lower excise duty rate. The average effective carbon rate for marked gas oil, sometimes referred to as ‘green diesel’, used in agriculture, forestry, and fishing was €59 per tonne of carbon dioxide.
Net Energy Tax per Litre
This release also contains data on net average energy taxes per litre on selected fuels. In 2023, net energy taxes on petrol were 53 cent per litre, of which 41 cent was excise duty (excluding carbon tax), 11 cent was carbon tax, and 2 cent was the NORA levy. Net energy tax per litre on road diesel was 46 cent per litre (See Figure 1.2 and Table 1.2A).”