Ireland one of the higher-taxed countries in the EU for fuel petrol and diesel exceeding 60%

Prices now soaring to over €2.20 and more at the pumps, prices are getting ridiculous.

Update:

Approximate Government Take Breakdown (at €2.20 Pump Price)Using recent industry estimates and AA pre-tax figures (adjusted for higher current levels):

These figures are from some internet search’s. Please check out your own: even thought the prices are changing you can still calculate the Percentage from the figures below.

• The government take is often around 50–65%
  

Ireland is considered one of the higher-taxed countries in the EU for fuel, petrol and diesel, with taxes and levies typically exceeding 60% of the pump price, making Ireland one of the higher-taxed countries in the EU for fuel petrol and diesel exceeding 60%. Specifically around 65% for petrol and 60% for diesel based on current (early 2026) breakdowns from AA Ireland and aligned with European Commission data analyses.Why Ireland Ranks High

• Excise duty rates (including the carbon component) are among the EU’s highest, particularly for diesel. According to the Tax Foundation’s 2026 data on diesel and gas taxes in Europe:
  • Ireland’s total excise on diesel is €0.616 per litre — second only to Italy (€0.632/L), well above the EU average of €0.468/L.
    
  • For petrol, Ireland’s rates are also elevated (total MOT/excise around €0.706/L), though not always the absolute top.
    
  • These fixed duties are layered with additional levies (NORA at 2c, Better Energy at 8c), plus 23% VAT applied on the entire amount (including taxes), which amplifies the tax burden.
    
  • 5th most expensive in the EU for petrol (including all taxes).
    
  • 3rd most expensive for diesel.
    
  • Before taxes (pre-tax price), Ireland ranks much lower (13th for petrol, 8th for diesel), confirming taxes drive the high costs rather than base fuel/refining prices.
    
• Percentage breakdown — Sources like AA Ireland (February 2026 averages) and media reports (e.g., Business Plus, The Journal) consistently report:
  • Petrol: =65% taxes/levies (e.g., at €1.73 pump price, =113c taxes).
  • Diesel: =60% taxes/levies (e.g., at €1.72 pump price, =103c taxes).
    
  • This exceeds 60% in most recent periods, with reports noting “more than half” (often 55–65%) of the final price is taxation/mandatory charges. This is higher than many EU peers, where the tax share averages lower (though it varies with oil prices and national policies).

EU Context

• EU minimum excise requirements are €0.359/L for petrol and €0.330/L for diesel, but most countries exceed these — Ireland significantly so, especially post-2025 carbon tax hikes.
• Overall pump prices place Ireland above the EU average (e.g., -12% higher than EU averages in early 2026 per fuel-prices.eu data), largely due to this tax layering.
• High taxes support environmental goals (carbon tax rising toward €100/tonne by 2030) and revenue, but contribute to Ireland having some of Europe’s priciest fuel at the pump despite average pre-tax costs.

For the latest weekly EU comparisons, the European Commission’s Oil Bulletin provides raw data, while AA Ireland offers Ireland-specific breakdowns.

Global oil fluctuations affect the pre-tax portion (and thus VAT), but fixed taxes remain the dominant factor in Ireland’s high ranking.

Typical Breakdown per Litre of Petrol (based on recent AA Ireland data for a €1.73 pump price) Ireland one of the higher-taxed countries in the EU for petrol exceeding 60%

• Pre-tax price (cost of the fuel itself, including refining, transport, margins, etc.): = 60.12c (this varies with global oil prices and exchange rates).
• Taxes and levies (total =112.88c, or about 65% of the pump price):
  

Total tax/levy portion: = 112.88c per litre (= 65% of pump price). The remaining = 35% covers the base fuel cost, retailer/wholesaler margins, and other overheads.Key Notes

• The total Mineral Oil Tax (MOT) combines the non-carbon excise + carbon tax, equating to = 70.614c per litre (€706.14 per 1,000 litres) for petrol as per Revenue’s rates effective from October 2025.
  
• Additional indirect costs (e.g., from the Renewable Transport Fuel Obligation for biofuel blending) are often embedded in the pre-tax price or contribute to small increases (e.g., 2–4c in early 2026 per industry reports), but they’re not always separated in consumer breakdowns.
  
• These rates have been stable since the October 2025 Budget/carbon tax adjustment (which added = 2.5c). No major changes noted for 2026 beyond January levies/RTFO adjustments that mainly affected overall prices rather than core tax rates.
  
• For the most precise up-to-the-minute figures, check the AA Ireland fuel prices page or Revenue’s excise rates, as global oil fluctuations affect the pre-tax portion and thus VAT.
  

This structure makes Ireland one of the higher-taxed countries in the EU for petrol, with taxes/levies often exceeding 60% of the final price.

Typical Breakdown per Litre of Diesel (based on AA Ireland data for a €1.72 pump price)

• Pre-tax price (cost of the fuel itself, including refining, transport, margins, biofuel blending via RTFO, etc.): ≈ 68.53c (higher than petrol due to market factors and blending requirements).
  
• Taxes and levies (total -103.47c, or about 60% of the pump price):
  • Mineral Oil Tax / Excise Duty (non-carbon component, fixed): – 42.57c
    (Revenue’s official rate is €425.72 per 1,000 litres, or 42.572c per litre.)
    
  • Carbon Tax (environmental component of Mineral Oil Tax): -18.74c
    (Higher for diesel due to greater CO₂ emissions per litre; from October 2025, the carbon element is €190.04 per 1,000 litres or 19.004c per litre, with slight rounding/variations in reports.)
    
  • NORA Levy (National Oil Reserves Agency, for strategic reserves): 2.00c
    
  • Better Energy Levy (supports energy efficiency schemes): 8.00c (same as petrol)
    
  • VAT (23% standard rate, applied to the entire sum of pre-tax price + all duties/levies): = 32.16c

Total tax/levy portion: =103.47c per litre (=60% of pump price). The remaining =40% covers the base fuel cost, retailer/wholesaler margins, and other overheads.Comparison: Petrol vs Diesel Taxes per Litre (March 2026, approximate based on AA Ireland/Revenue data)

Component	Petrol (=€1.73 pump)	Diesel (=€1.72 pump)	Key Difference
Pre-tax price	60.12c	68.53c	Diesel higher (market/biofuel factors)
Non-carbon Excise	54.18c	42.57c	Petrol higher (historical policy)
Carbon Tax	16.35c	18.74c	Diesel higher (higher CO₂ emissions)
NORA Levy	2.00c	2.00c	Same
Better Energy Levy	8.00c	8.00c	Same
VAT (23%)	32.35c	32.16c	Similar (scales with total)
Total taxes/levies	112.88c	103.47c	Petrol higher overall
Tax as % of pump price	-65%	-60%	Petrol more tax-heavy
Total MOT (excise + carbon)	70.614c (€706.14/1,000L)	61.576c (€615.76/1,000L)	Petrol higher total MOT

Key Notes on Comparison

• Overall taxes higher on petrol — Despite diesel having a higher carbon tax (reflecting greater emissions per litre), the much lower non-carbon excise on diesel results in lower total fixed duties/levies (= 9–10c less per litre). This makes diesel marginally cheaper at the pump in Ireland currently, though pre-tax diesel costs are often higher.
  
• EU context — Ireland applies one of the highest diesel excise rates in the EU (€0.616/L total excise per Tax Foundation 2026 data), but still lower than petrol’s equivalent.
  
• Other factors — Both fuels face the same NORA and Better Energy levies, plus 23% VAT on everything. RTFO biofuel mandates (increased in 2026) add indirect costs (embedded in pre-tax price, = 4–5c rise noted in early 2026 reports), affecting both similarly.
  
• Stability — Rates unchanged since October 2025 carbon tax hike (added = 2.5c to both). Next potential changes could come in future budgets or May 2026 for some non-auto fuels.
  
  This contributes to Ireland having among the highest taxed fuels in the EU, with taxes often 60–65% of the pump price for both fuels.
  

Disclaimer:

These figures are based on recent averages (e.g., February / March 2026 from AA Ireland). For real-time national averages, tax details, or any updates, visit AA Ireland’s fuel prices page or the Revenue Commissioners’ official excise duty information, since volatile global oil prices influence the pre-tax component and associated VAT.

Petrol (Euro 95) – Highest to Lowest (EU Average: €1.551/L)

• Highest:
  1. Netherlands: €2.062
  2. Denmark: €1.938 (approximate, aligned with reports; some sources note ~€1.98 in similar periods)
  3. Germany: €1.824
  4. Ireland: €1.739 (AA Ireland February 2026 national average, consistent with EC-aligned data)
  5. Greece: €1.738
• Lowest:
  • Bulgaria: €1.218 (cheapest)
  • Malta: €1.340
  • Cyprus: €1.312 (approximate low tier)
  • Romania: €1.546
  • Latvia: €1.532

Full spread: -€0.844/L difference between highest and lowest.Diesel – Highest to Lowest (EU Average: €1.545/L)

• Highest:
  1. Netherlands: €1.873
  2. Denmark: €1.780
  3. Germany: €1.733
  4. Ireland: €1.737 (AA Ireland February 2026 average)
  5. Italy: €1.702
• Lowest:
  • Malta: €1.210 (cheapest)
  • Bulgaria: €1.228
  • Cyprus: €1.406
  • Spain: €1.423
  • Poland: €1.424

Full spread: Similar to petrol, with taxation (especially excise) driving most of the variation — pre-tax costs are fairly uniform EU-wide.Key Notes

• Ireland’s ranking: Consistently in the top 5 highest for both fuels (around 4th), due to high excise duties (especially diesel at -€0.616/L, second-highest in EU) plus 23% VAT and levies.
  
  _______________________________________
  
  Diesel Pump Prices per Litre – Highest to Lowest (EU Average: €1.545)
• Highest (top ranks, driven by high excise duties and VAT):
  1. Netherlands: €1.873
  2. Denmark: €1.780
  3. Germany: €1.733
  4. Finland: €1.738 (approximate, clustered high in reports)
  5. Ireland: €1.737 (AA Ireland February 2026 national average; aligns with EC data, placing Ireland -4th–6th highest)
  6. Italy: €1.702 (close behind)
• Lowest (bottom ranks, closer to EU minimum excise levels):
  • Malta: €1.210 (cheapest overall)
  • Bulgaria: €1.228
  • Cyprus: €1.406
  • Spain: €1.423
  • Poland: €1.424 (low tier, often grouped with Eastern/Southern EU)
• Full spread: €0.663/L difference between highest and lowest. Other notable highs include France (€1.650) and Belgium (-€1.731 in some cross-references). Key Notes
• Ireland’s ranking: Ireland remains in the top 5–6 highest for diesel, largely due to its high excise rate (-€0.616/L total, second-highest in EU after Italy per Tax Foundation). This keeps pump prices elevated despite similar pre-tax costs EU-wide.

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AA Ireland fuel prices page

https://www.theaa.ie/aa-membership/fuel-prices/

Revenue’s excise rates

https://www.revenue.ie/en/companies-and-charities/excise-and-licences/excise-duty-rates/index.aspx