How does Ireland's fuel tax compare to other EU countries?
Ireland's fuel tax is above the EU average but not the highest in Europe.
Ireland's fuel tax is above the EU average but not the highest in Europe.
Ireland's fuel tax, though above the EU average, is not the highest, as evidenced by other countries imposing steeper excise duties. This results from a combination of excise, carbon tax, and VAT, leading to significant overall costs for consumers, impacting affordability and igniting public debate on tax burdens versus environmental goals.
Irish fuel taxes consist of several components: excise duty, carbon tax, VAT, and a small NORA levy. As of April 2024, excise duty is €0.47 per litre for petrol and €0.37 for diesel. Carbon tax adds €0.13 per litre for petrol and €0.15 for diesel. VAT, at 23%, typically accounts for about 19% of the total price per litre. The NORA levy is just under €0.02 per litre.
Combined, these taxes mean about 55% of the price of unleaded petrol and 50.5% of diesel is tax. For example, with a pump price of €1.74 per litre, taxes and levies account for roughly €0.95 on petrol and €0.88 on diesel.
When compared to other EU countries, Ireland’s fuel taxes are above the EU average but not the highest. According to the Tax Foundation’s 2026 data, Ireland’s excise duty on petrol is €0.706 per litre, compared to the EU average of €0.570. For diesel, Ireland’s excise duty is €0.616 per litre, while the EU average is €0.468.
| Country | Petrol Excise Duty (€/L) | Diesel Excise Duty (€/L) | VAT Rate |
|---|---|---|---|
| Netherlands | 0.845 | 0.552 | 21% |
| Denmark | 0.717 | 0.569 | 25% |
| Italy | 0.713 | 0.632 | 22% |
| Ireland | 0.706 | 0.616 | 23% |
| Greece | 0.700 | 0.410 | 24% |
| France | 0.683 | 0.594 | 20% |
| Germany | 0.655 | 0.470 | 19% |
| EU Average | 0.570 | 0.468 | 22% |
| Malta (Lowest) | 0.359 | 0.330 | 18% |
These figures show Ireland’s excise duties are among the highest in the EU, but not the absolute highest. The VAT rate in Ireland is also in the upper range, further increasing the total tax burden on fuel.
High fuel taxes contribute to Ireland ranking as the 10th most expensive country in Europe for petrol and 3rd for diesel when all taxes are included. In 2024, pump prices in Ireland were around €1.74 per litre, with over half of that cost due to taxes and levies. By comparison, Denmark and the Netherlands have higher pump prices, while Malta remains the cheapest in the EU.
Despite the high tax share, the underlying cost of fuel in Ireland is broadly average by European standards. The elevated position in price rankings is primarily due to the tax structure rather than wholesale fuel costs.
In response to global price shocks, Ireland temporarily reduced fuel duties in 2022, but these reductions have largely been reversed. Other EU countries, such as Italy and Spain, implemented more substantial relief measures, including significant VAT and excise cuts. The Netherlands and Romania have recently increased their fuel taxes, while Malta continues to adhere to the EU minimum rates.
Ireland's fuel tax is above the EU average but not the highest in Europe.
Irish fuel taxes consist of excise duty, carbon tax, VAT, and a small NORA levy.
As of April 2024, excise duty is €0.47 per litre for petrol and €0.37 for diesel.
Ireland has a VAT rate of 23% on fuel.
Ireland ranks 10th for petrol prices and has a higher excise duty than the EU average.
High fuel taxes contribute to Ireland being the 10th most expensive country for petrol in Europe.
In response to global price shocks, fuel duties were temporarily reduced in 2022 but largely reversed.
