IPRA has submitted a pre budget submission to the Finance Minister Simon Harris TD. The detail is below;
14th September 2026
Submission to the Minister of Finance ahead of Budget 2026/27
Introduction
The IPRA represents independently owned forecourt retailers across Ireland. Our members operate in every County, providing essential fuel and convenience retail services to urban and rural communities.
The Challenge
Forecourt retailers face four structural pressures threatening sector viability:
- Fuel theft (drive-offs) costs members on average €5,000 per station annually (with some reporting up to €40,000), with no mechanism to recover the 39–47% tax element embedded in stolen fuel.
- Commercial rates valuations for forecourts are based on turnover (fuel throughput), not profit or margin, resulting in valuations 2–3 times higher than supermarkets (Lidl, Aldi, Tesco) on a per-euro-turnover basis.
- The planned reinstatement of fuel duty (November 2026–February 2027) will increase pump prices by 27–32c/L, pushing petrol above €2.10/L and diesel above €2.20/L, at a time when the Government already takes 47–57% of the pump price.
- Retail crime, drive-offs, and vandalism impose a severe financial and emotional toll on petrol retailers across Ireland.
OUR FOUR REQUESTS FOR BUDGET 2027
REQUEST 1: REFUND OF DUTY ON STOLEN FUEL
What we seek: A duty refund mechanism for forecourt retailers on fuel stolen from their premises, subject to Garda reporting and Revenue audit trail.
Why: Retailers pay Mineral Oil Tax (MOT) at purchase but cannot recover it when fuel is stolen. For every €2,500 of fuel stolen, €1,250–€1,2750 (petrol) or €925–€950 (diesel) in Excise Duty, Carbon Tax, and levies is irrecoverable.
Impact: Restores fairness; supports Garda reporting; reduces uncontrolled cost pressure on marginal businesses.
REQUEST 2: REFORM OF COMMERCIAL RATES METHODOLOGY
What we seek: Legislative change to align forecourt valuation methodology with mainstream retail (site size/rental evidence, not turnover) and introduce a statutory review mechanism for methodology.
Why: Forecourts are valued on fuel throughput despite operating on 3–5% margins versus 8–12% for grocery retailers. The Valuation Tribunal cannot review methodology, only quantum.
Impact: Ensures equity across retail sectors; reduces anomalous cost burden on independent forecourts.
REQUEST 3: HOLD ON DUTY REINSTATEMENT & WORKING GROUP
What we seek: Pause the scheduled excise restoration (Nov 2026–Feb 2027) and establish a government–Stakeholder Working Group to review the overall tax take, targeting a maximum of one-third (33%) of pump price.
Why: The Government currently takes 47% of the petrol pump price (rising to 50–52% after full reinstatement). Full reinstatement will add 27–32c/L, risking renewed consumer backlash.
Impact: Protects rural households and small businesses; ensures collaborative, evidence-based tax policy.
REQUEST 4: ESTABLISH RETAIL CRIME COMPENSATION FUND & RESTITUTION REFORM
What we seek: Abolition of the ‘court poor/charity box’ in favour of direct victim restitution, redirection of seized criminal assets to retail safety grants and expansion of the Criminal Injuries Compensation Scheme.
Why: assist independent retailers with the financial and emotional toll crime brings on their businesses.
Impact: Will help to keep the doors of independent retailers across Ireland open.
1. Refund of Duty on Stolen Fuel (Drive-Offs)
Forecourt retailers pay Mineral Oil Tax (MOT) at the point of purchasing fuel from oil companies. When fuel is stolen—typically via drive-offs—retailers bear the full cost of the product and the tax, with no mechanism to recover the duty element.
Recent IPRA research indicates that many stations are losing up to €5,000 per annum in fuel drive-offs, with cases increasing exponentially. This represents a significant and unsustainable burden, particularly for small, independent operators.
Current Tax Burden on Stolen Fuel
The tax component embedded in each litre of stolen fuel is substantial (Sept26 figures): Petrol (€1.84/L)
| Component | Cents/Litre | Refundable? |
| Excise Duty | 33.86c | Yes |
| Carbon Tax | 16.43c | Yes |
| NORA Levy | 0.10c | Yes |
| VAT (23%) | 34.34c | No |
| Total Refundable | 50.39c/L |
Diesel (€1.92/L):
| Component | Cents/Litre | Refundable? |
| Excise Duty | 18.18c | Yes |
| Carbon Tax | 19.00c | Yes |
| NORA Levy | 0.10c | Yes |
| VAT (23%) | 35.82c | No |
| Total Refundable | 37.28c/L |
For every €5,000 of fuel stolen, forecourt operators lose approximately €2,500–€2,550 per litre on petrol or €1,8500–€1,900 per litre on diesel in Excise Duty, Carbon Tax, and levies (NORA and Better Energy), which were paid upfront at purchase but are irrecoverable.
Proposal
IPRA requests the introduction of a duty refund mechanism for forecourt retailers in respect of fuel stolen from their premises, subject to the following conditions:
- Evidence requirement: Retailers must provide a Garda report or incident reference number for each theft claim.
- Audit trail: Refunds to be processed via Revenue, cross-referenced with Garda records and retailer purchase invoices.
- Cap or threshold: Optionally, a per-station annual cap or excess could be applied to manage Exchequer exposure.
This approach mirrors restitution models used in other jurisdictions (e.g., the BOSS scheme in Great Britain, which offers up to 80% restitution) and recognises that the State should not retain tax revenue on fuel that was never legally sold or consumed.
Rationale
- Fairness: Tax should not be levied on fuel that never entered the legal supply chain.
- Support for compliance: Encourages reporting and cooperation with An Garda Síochána.
- Sector viability: Reduces a growing, uncontrolled cost pressure on already marginal businesses.
2. Reform of Commercial Rates Valuation Methodology for Forecourts
Under the current system, forecourt valuations for commercial rates are based primarily on turnover (fuel throughput), whereas mainstream retailers such as Lidl, Aldi, and Tesco are valued based on site size and rental evidence. This results in disproportionately high valuations for forecourts, despite their significantly lower profit margins per euro of turnover.
The only recourse available to ratepayers is an appeal to the Valuation Tribunal, which is statutorily bound to apply the existing methodology—meaning the underlying inequity cannot be challenged.
Illustrative Inequity
| Retail Format | Valuation Basis | Typical Rateable Value | Effective Rate per €1,000 Turnover |
| Forecourt | Fuel throughput (litres) | €80,000–€150,000 | €12–€18 |
| Supermarket (Lidl/Aldi/Tesco) | Site size (sq. m) + rental evidence | €40,000–€70,000 | €4–€7 |
Note: Industry data suggests forecourts operate on 3–5% net margins, compared to 8–12% for major grocery retailers.
Proposal
IPRA calls for urgent legislative change to the Valuation Acts to:
- Align forecourt valuation methodology with that of other retail formats (e.g., based on site area, building size, and market rental evidence, not fuel throughput).
- Introduce a statutory review mechanism allowing for periodic reassessment of the methodology itself, not just the quantum of individual valuations.
- Ensure parity of treatment across retail sectors, reflecting the low-margin, high-volume nature of fuel retailing.
Rationale
- Equity: Forecourts should not be penalised for high turnover that does not translate into proportionate profit.
- Transparency: A reviewable methodology ensures the system can adapt to market changes.
- Competitiveness: Reduces an anomalous cost burden that undermines the viability of independent forecourts versus large chains.
3. Hold on Planned Duty Reinstatement & Establishment of a Working Group
The current Government take on a litre of petrol is approximately 47–57% of the pump price (including excise, carbon tax, levies, and VAT), depending on location and reporting source. Temporary reductions in Mineral Oil Tax introduced in 2026 are scheduled to be unwound in stages from November 2026 to February 2027, which will push prices above €2/litre and risk renewed consumer backlash.
Full Tax Breakdown (as of September 2026)
Petrol (€1.84/L average):
| Component | Cents/Litre | % of Pump Price |
| Wholesale cost (crude, refining, transport, margin) | 98.13c | 53% |
| Excise Duty | 33.86c | 18% |
| NORA Levy | 0.10c | <1% |
| Carbon Tax | 16.43c | 9% |
| VAT (23%) | 34.34c | 19% |
| Total Government Take | 85.13c | 47% |
Diesel (€1.92/L average):
| Component | Cents/Litre | % of Pump Price |
| Wholesale cost (crude, refining, transport, margin) | 117.65c | 61% |
| Excise Duty | 18.18c | 9% |
| NORA Levy | 0.10c | <1% |
| Carbon Tax | 19.00c | 10% |
| VAT (23%) | 35.82c | 19% |
| Total Government Take | 73.11c | 39% |
Scheduled Reinstatement (2026–2027)
The Government has confirmed a phased restoration of excise duty as follows:
November 2026: Partial restoration (+~7c/L on petrol, +~8c/L on diesel)
January 2027: Further restoration (+~7c/L on petrol, +~8c/L on diesel)
February 2027: Full restoration to pre-cut levels (+~13c/L on petrol, +~16c/L on diesel)
This would increase the pump price by approximately 27c/L on petrol and 32c/L on diesel (VAT-inclusive), pushing petrol above €2.10/L and diesel above €2.20/L in many areas.
Proposal
IPRA requests that:
The planned reinstatement of fuel duty increases be paused pending a comprehensive review in 2027.
A Government–Stakeholder Working Group be established, comprising the Department of Finance, Revenue, IPRA, oil companies, and consumer representatives, to:
Review the overall tax take on motoring fuels.
Recommend a sustainable cap (IPRA proposes gradual reduction towards no more than one-third (33%) of pump price).
Consider the impact of tax policy on working families, rural mobility, inflation, and small business viability.
Rationale
Affordability: High fuel costs disproportionately impact rural households and small businesses.
Economic stability: Prevents repeat of earlier protests and demand destruction.
Collaborative policy: Ensures tax settings reflect real-world market dynamics and social objectives.
Establish Retail Crime Compensation Fund & Restitution Reform
Retail crime, drive-offs, and vandalism impose a severe financial and emotional toll on petrol retailers across Ireland. The IPRA requests a structural reform of how financial penalties are handled in the court system, ensuring that funds penalising criminals are directly redirected to compensate the small businesses that bear the brunt of these crimes.
Proposal
The IPRA requests:
Abolition of the ‘Court Poor Box’ in Favour of Direct Victim Restitution
Currently, judges allow offenders to make charitable donations to bypass a conviction. We request that when a petrol station is targeted by theft, drive-offs, or criminal damage, any financial penalty levied by the court must prioritises direct financial compensation to the retail victim to cover their stock and property losses, rather than being redirected to external charities.
Redirection of Seized Criminal Assets to Retail Safety Grants
A dedicated portion of assets seized by the Criminal Assets Bureau (CAB) be earmarked for a Retail Security Grant Scheme. Independent forecourt operators require urgent financial assistance to upgrade expensive crime-prevention infrastructure, including high-definition ANPR (Automatic Number Plate Recognition) cameras, enhanced CCTV, and staff panic systems. Many simply cannot afford to fund and continue to upgrade these themselves.
Expansion of the Criminal Injuries Compensation Scheme
The government must review the Criminal Injuries Compensation Tribunal scheme to also acknowledge the unique commercial vulnerability of independent retailers.
Rational
Financial Compensation: prioritises direct financial compensation to the retail victim.
Avoid Penalisation: not further penalise the retailer who has been a victim of crime or who is trying to avoid being a victim of crime or avoid being the victim of crime again.
Commercial Compensation Scheme: to keep independent retailers’ doors open.
Conclusion
The forecourt retail sector is a vital part of Ireland’s retail and transport infrastructure, particularly in rural areas. The measures outlined above would:
Restore fairness in the tax system.
Improve the viability of independent businesses.
Support consumers through more stable and affordable fuel prices.
Support forecourt retailers for losses and expenditure to protect against losses faced through crime and theft.
IPRA welcomes the opportunity to discuss these proposals in detail and to participate constructively in the Budget 2027 process.
For more information please contact;
Irish Petrol Retailers Association
Unit 11, Woodview Court, Tandy’s Lane, Doddsborough, Lucan, Co. Dublin, K78 VX38
T: 01 210 3894
W: www.ipra.ie
E: office@ipra.ie