Hauliers seek Budget rebates to cut cost of cleaner fuels

Irish hauliers are seeking fuel rebates in next week’s Budget, warning that tight profit margins are making it difficult for operators to switch to lower-carbon fuels.

The Irish Road Haulage Association (IRHA) wants rebates of up to 24 cent per litre to help businesses reduce emissions from trucks already on the road, alongside an extension of existing fuel and industry supports.

IRHA President Ger Hyland said the Budget offered an opportunity to protect rural jobs and reduce transport emissions, but warned that getting it wrong would put further pressure on an already stretched sector.

The association is proposing a 12 cent per litre rebate for the sustainable biofuel component of blended diesel and a 24 cent per litre rebate for operators using 100% HVO, or hydrotreated vegetable oil, as a diesel substitute.

It also wants reduced fuel excise extended into spring 2027, a further three months of the Road Transporters Support Scheme and the diesel rebate maintained at current levels.

Mr Hyland said biofuels could help existing heavy goods vehicles reduce emissions without waiting for electric trucks to become widely available.

“Government talks constantly about decarbonisation, energy security and meeting Ireland’s climate obligations.

“We are putting forward a practical solution that could allow thousands of existing trucks to start reducing their emissions immediately.

“The technology is here. The trucks are here. The fuel is available. What is missing is the financial incentive to make the switch viable for hauliers.”

The IRHA argues that making lower-carbon fuels more competitive with conventional diesel would encourage their use and reduce Ireland’s dependence on imported fossil fuels.

However, Mr Hyland said operators could not be expected to carry the full cost of that transition.

“If Government wants hauliers to move away from fossil fuels, then it has to make the alternatives economically viable.

“You cannot ask a low-margin industry to absorb the entire cost of the transition.”

The association also says greater use of sustainable biofuels could help Ireland reduce transport emissions and limit its future exposure to EU climate fines.

Mr Hyland urged Government to recognise the role hauliers play in keeping goods moving, from supermarket deliveries to supplies for factories and farms.

“Our members keep supermarkets supplied, factories operating, farms connected to markets and businesses across rural Ireland functioning.

“If we want a strong rural economy, we need a strong and viable haulage sector.”