PetrolPrices.ie

The Irish fuel price guide

What determines the price at the pump?

A litre of fuel has a journey before it reaches your tank. Wholesale markets, tax, transport and the cost of running a forecourt all help determine the price on the sign.

The components

Where does the pump price come from?

There is no single cost that explains every price change. These are the main parts of the supply and retail chain.

01

Wholesale fuel

Petrol and diesel are traded as refined products. Their wholesale cost moves with supply and demand, refinery capacity, global markets and currency movements.

02

Taxes and duties

The pump price includes Mineral Oil Tax (including excise and its carbon component), the NORA levy and VAT. VAT is also charged on the duty and levy components.

03

Storage and delivery

Fuel must be stored, transported and delivered to each forecourt. The cost of that supply chain can vary by location and supplier.

04

Running a forecourt

Staff, electricity, rent, maintenance, payment costs and retailer margins all contribute to the final price.

The tax breakdown

How much of a litre of fuel is tax?

Fuel duty is only part of the tax bill. In the Republic of Ireland, VAT is calculated on the selling price after Mineral Oil Tax and applicable levies have been included. That means VAT is charged on the duty as well as on the fuel and supply costs.

Interactive breakdown

Where does €1 of fuel money go?

Change the fuel type or pump price to see how the tax share changes. The duty rates are the Republic of Ireland rates in force from 14 October 2026.

Of every litre, tax and levies account for

44.1%(€0.874)
Tax & leviesOther costs & margin 55.9%

Breakdown of €1.982 per litre

100% of pump price
Non-carbon excise33.86c17.1%
Carbon tax16.43c8.3%
NORA levy0.10c0.1%
VAT37.05c18.7%
Fuel, supply & retail remainder110.72c55.9%
Final pump price€1.982 / litre
VAT is calculated as 23/123 of the VAT-inclusive pump price. The remaining non-tax portion is a combined estimate for the refined fuel, distribution, storage, supplier and forecourt operating costs, other obligations and margins; it is not a published wholesale price or retailer profit figure.

Using the AA Ireland October 2026 average pump prices and the Mineral Oil Tax rates in force from 14 October, the calculated tax-and-levy share is approximately 44.1% for petrol and 36.1% for diesel. The percentage changes when the pump price changes because excise is charged per litre while VAT varies with the selling price.

What changes next?

Upcoming fuel tax changes in Ireland

Known changes announced or legislated as at 6 November 2026. Pump-price effects are not forecasts of what individual stations will charge.

Last checked: 6 Nov 2026

  1. 31 December 2026

    Announced

    Temporary NORA levy reduction ends

    The NORA levy is currently 0.1c per litre. The Budget 2027 extension runs to the end of December; the standard 2c/L rate is then due to return from 1 January 2027.

    Petrol: +2.34c/LDiesel: +2.34c/L

  2. 28 February 2027

    Legislated schedule

    First excise restoration

    The first stage of the temporary Mineral Oil Tax reduction is unwound. Published pump-price effect, including VAT.

    Petrol: +5c/LDiesel: +7c/L

  3. 8 April 2027

    Legislated schedule

    Second excise restoration

    The second stage of the temporary non-carbon excise reduction is restored.

    Petrol: +5c/LDiesel: +7c/L

  4. 1 May 2027

    Legislated schedule

    Third excise restoration and carbon tax increase

    A further excise restoration takes effect alongside the deferred carbon-tax increase from €71 to €78.50 per tonne of CO₂.

    Petrol: +7c + 2.1c/LDiesel: +8c + 2.5c/L

  5. 30 June 2027

    Legislated schedule

    Final excise restoration

    The final stage restores the remaining temporary non-carbon excise reduction.

    Petrol: +8c/LDiesel: +8c/L

  6. 13 October 2027

    Scheduled trajectory

    Further carbon-tax increase

    The carbon-tax trajectory is scheduled to rise from €78.50 to €86 per tonne of CO₂. The actual pump impact depends on the fuel and VAT.

    Petrol: Further increaseDiesel: Further increase
How to read the figures: excise restoration figures are published VAT-inclusive pump effects. The 1 May 2027 carbon-tax amounts are additional to that day’s excise step. The NORA estimate is the 1.9c/L pre-VAT difference between 0.1c and 2c, multiplied by 1.23. Actual pump prices also depend on wholesale prices, exchange rates and retailer pricing.
Oireachtas: Financial Resolution No. 5 ↗RTÉ: Budget 2027 fuel measures ↗Revenue: current Mineral Oil Tax rates ↗

What is Mineral Oil Tax?

Mineral Oil Tax (MOT) is the main fuel duty. Revenue publishes it as a non-carbon component and a carbon component. From 14 October 2026, the total rates are €502.88 per 1,000 litres of petrol (50.288c/L) and €371.85 per 1,000 litres of auto-diesel (37.185c/L).

What is the NORA levy?

The National Oil Reserves Agency levy helps fund Ireland's strategic oil reserves. The temporary reduced rate of 0.1 cent per litre has been extended to the end of 2026. It is separate from Mineral Oil Tax.

Why do people call it "tax on tax"?

Excise duty and carbon tax are added to the underlying fuel price. VAT is then charged at the standard rate of 23% on the VAT-exclusive selling price, which already includes those duties and applicable levies.

For example, if a litre has 50 cent of Mineral Oil Tax added, that 50 cent is part of the amount on which VAT is calculated. At 23%, it adds another 11.5 cent of VAT. The duty therefore increases the final price by 61.5 cent, not just 50 cent.

This is not VAT being charged on a previous VAT charge. It is VAT being applied to a taxable amount that includes excise duty and other applicable charges.

At the forecourt

Why can two nearby stations charge different prices?

Each retailer makes its own pricing decisions. Stations can have different supply contracts, delivery costs, operating expenses and nearby competitors. They may also be selling fuel bought at different points in the wholesale market.

A cheaper price at one station does not tell you exactly what that retailer paid for its fuel or how much profit it makes. It simply tells you what that forecourt is charging at the time the price was reported.

Why doesn't the pump price follow crude oil instantly?

Crude oil is only one input. Refined fuel prices, exchange rates, taxes, transport, stock already held by suppliers and local retail decisions all affect when a market change reaches the forecourt.

Explore price history

Make the comparison count

Is it worth driving further for cheaper fuel?

Compare the same fuel type and look at the saving per litre. Then factor in how much you intend to buy and the extra distance to the cheaper station. A small price difference can disappear if it means making a long detour.

Use the fuel cost calculator to estimate a journey, or compare reported station prices on Pick A Pump.

Republic of Ireland and Northern Ireland

Prices in the Republic are generally displayed in euros, while Northern Ireland prices are displayed in pounds sterling. Taxation, currency and retail conditions differ, so compare like with like and use a current exchange rate when considering a cross-border fill-up. Also account for the distance travelled.

Sources and further reading