Fuels for Ireland files illegal state aid request with the EU

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The representative body of companies involved in importing, distributing and marketing petroleum products has lodged a complaint with the EU alleging illegal state aid from the government.

Fuels for Ireland claims that consumers of petroleum-based energy have had the responsibility of funding the government’s Climate Action Fund which rests solely with them.

He said its members were at a competitive disadvantage as a result of an illegal decision.

The organization says users of other energy sources, such as coal and peat, which also generate greenhouse gas emissions, have not been held accountable in the same way.

“We are determined to play our part in tackling our climate and environmental emergency and in funding Ireland’s climate action plans,” said Kevin McPartlan, Managing Director of Fuels for Ireland.

“We are committed to being carbon neutral by 2050, but we cannot stand idly by and allow our consumers to be the only ones paying for the Irish Climate Action Fund,” he added .

Fuels for Ireland members include some of the country’s largest forecourt operators including Applegreen, Circle K, Maxol, Top and Emo.

Previously, 2 cents per liter of fuel they sold was used to fund the National Oil Reserves Agency, which guarantees Ireland a 90-day stock of oil ready at any time in the event of a global shortage.

However, recently a change has been made by the government which will see all tax revenues redirected to the Climate Action Fund.

The fund was established to provide assistance and financial support for projects that will help Ireland meet its climate and energy goals with public funding of at least € 500 million until 2027.

But Fuels for Ireland says the move to redirect the tax proceeds has the effect of placing the full burden of financing the fund’s work on oil consumers, especially those in rural Ireland.

He is now alleging to the European Commission that this is state aid because it places its members at a competitive disadvantage.

The organization wants the burden to be shared equally among all suppliers and consumers of fossil fuels, through the carbon tax.

“We have brought this matter to the attention of the minister and the department on several occasions,” said McPartlan.

“The state discriminates against people who use heating oil to heat their homes, put gasoline or diesel in cars to get to work or take their children to school and we have been forced to bring this issue up. before the European Commission by Complaint for State aid “, he added.

The European Commission will now have to assess the case to see if it warrants further consideration.

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