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Irish Times
9 hours ago
- Automotive
- Irish Times
Why is it costing me more to use green fuel in my car than fossil fuels?
May I draw attention to an item that seems to escape scrutiny and that is the higher per litre pump price of HVO (hydrogenated vegetable oil). I switched my 1.5-litre diesel car to HVO in early 2024, when it was cheaper but the supplier has increased it since, stating the original price was an introductory promotion. The fuel is currently costing two to three cent more per litre than the prevailing diesel price. The Department of Transport has not responded to two queries re the taxation element, which ought to reflect the lower emissions factor. This seems to indicate that Revenue considerations supersede environmental objectives, and this deserves examination. Mr W.K. READ MORE As our carbon emissions continue to rise despite everything we are being told about the perils of climate change, it is good to see some people making the necessary personal choices to reduce emissions. But I can fully understand your chagrin at having made the switch only to see you are actually paying more for your biofuel than you would be if you had stuck with diesel, a fossil fuel. The Sustainable Energy Authority of Ireland said hydrogenated vegetable oil (HVO) is a renewable form of biofuel derived from vegetable oil, which is processed with hydrogen, to create a diesel substitute product. It says HVO can have a carbon footprint that is at least 65 per cent lower than conventional fossil fuel, such as diesel. For its part, Revenue tells me that HVO, like all liquid fuels, is subject to mineral oil tax. However, the tax applied to biofuels produced by biomass, including HVO, relieved of the carbon component of the tax. What does that mean? Well, the diesel you used to use has an motor oil tax charge of €595.68 per thousand litres, or just shy of 0.6 cent per litre. HVO has a motor oil tax charge of €425.72 per thousand litres as it is excused the €169.96 carbon element of the diesel tax rate. That comes to just over 0.4 cent per litre. So, all other things being equal, your HVO should cost 0.17 cent less per litre. For other people reading this, it is worth bearing in mind that the figures will vary slightly if your biofuel is replacing petrol or if you are using it for heating. It will be different again for those using blended fuels where the dispensation applies only to the portion that is biofuel. You can find all the details here . Revenue also notes that the relief from the carbon component of motor oil tax is granted to the supplier at the top of the chain. This means the price paid by wholesalers and retailers already allows for that ...which is why you should expect to benefit from the relief. Moving on from motor oil tax, fuels are also liable in Ireland to value added tax (VAT). Irish VAT rates are obliged to work within EU rules although there is some wriggle room in places. In this case, motor fuels are subject to the standard rate of VAT – currently 23 per cent. Ireland does use the discretion available to it to tax HVO at a lower rate of VAT – 13.5 per cent – but only when it is used as a heating oil, not in cars. So where does that leave us? Well, you're paying fractionally less tax on your HVO and you have the comfort of knowing that it sharply reduces the emissions from your car. However, that does not mean it is cheaper. There are two factors here. First, HVO is more expensive to produce than diesel. The industry says this is due to higher production costs and the challenge of sourcing raw material in industrial quantities. In fact, if one UK supplier is to be believed, you should be expecting to pay 10-15 per cent more for HVO than diesel but I understand the UK gives HVO no relief such as is available in Ireland under motor oil tax. The other factor is that it is not as efficient as diesel for your car. That means you will need to purchase around 7.3 per cent more HVO to cover the same mileage as you would with diesel. This is why most HVO in Ireland is, I understand, used by commercial fleets rather than by individual motorists. For companies, the offsetting by the green credentials may make it more attractive despite the added costs. But it is also why consumers need to ensure they are fully informed of the longer-term budgetary impact before making a decision to switch to such fuels. You note you switched at a time when the supplier was offering HVO at a price lower than diesel. I would have hoped the supplier made it clear this was an introductory offer but it appears from your letter that they didn't. That's not a great way for a long-term supplier of fuel to build a relationship of trust. From what I can gather, it will cost you more to run your car with HVO than with diesel. And that is even with the preferential tax rate. You suggest Revenue considerations appear to supersede environmental objections. On the basis of the motor oil tax relief, that's not entirely fair, although it is true to say the incentive to go green is modest – perhaps too modest given the additional base costs outlined above. The Government faces a choice. Either it increases the incentives available to accelerate take-up among the public, or it relies on people caring more for the environmental (and likely financial) benefits for future generations than their own pocket. On a related note, if Government departments are simply ignoring queries that come into them, it is dispiriting. The Department of Transport is among the department supposedly leading the Government's charge to hit what now appear to be unattainable climate change targets by the end of the decade. You would think they should be encouraging moves in that direction and pointing people in the direction of the information that helps them make informed choices. Ignoring people inevitably irritates people and makes them less receptive to messages the Government tells us it considers important. The information you sought was readily available from Government departments – Revenue was able to provide me with the details and point me to references within 24 hours – so it really was not beyond the department to direct your query appropriately and provide you with the basic information sought. Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street Dublin 2, or by email to with a contact phone number. This column is a reader service and is not intended to replace professional advice
Irish Times
21-05-2025
- Business
- Irish Times
State hits lowest emissions in 30 years but clean energy evolution incomplete, notes SEAI report
Ireland's energy-related emissions have reached their lowest level in more than 30 years, but the country's transition to clean energy shows no sign of gaining momentum, according to the latest data from the Sustainable Energy Authority of Ireland (SEAI). Its interim report on how much energy was consumed in 2024, what sources were used and where this energy came from, shows the electricity sector is set to meet its critical 2030 targets but other sectors such as transport and heating are far short of legally-binding commitments. The 1.3 per cent drop in energy emissions last year marks an overall reduction of 11 per cent since carbon targets were introduced in 2021. This is despite an increase in overall energy use – which grew by 2.3 per cent last year. Increased use of bioenergy and technologies such as solar PV and heat pumps meant renewable energy supplied 14.5 per cent of Ireland's energy requirements, a slight increase on 2023. READ MORE SEAI estimates electricity sector emissions were down by 7.5 per cent. Though renewable generation capacity increased, increase in power demand 'continues to outpace renewables', while grid constraints including 'curtailments' and lower wind outputs last year were also a factor. The top three sources of electricity were again natural gas (42.1 per cent), wind (31.7 per cent), and 'net-imports' from using interconnectors with the UK (14 per cent). Ireland is out of step with the rest of Europe, however, importing more than 75 per cent of its energy needs in the form of fossil fuels. SEAI director of research and policy insights Margie McCarthy said the energy emissions trend indicated 'changes we are making are going in the right direction. Last year saw record levels of solar PV generation, record levels of heat pumps and further growth in overall renewable energy share. These were all driven by positive policy decisions. 'If we are to meet our [climate] targets, we have no time to wait, we need to accelerate our deployment of renewable energy technologies and we have to make wise decisions on energy demand growth.' Investment in renewable technologies and interconnectors, while continuing to retrofit housing and public buildings along with moves to active travel and public transport were required, she said. 'Only with collective effort and buy in will we achieve the changes needed in our consumption behaviours to realise the energy transition,' Ms McCarthy said. 'I've entrepreneurial spirit in my veins' – Apprentice star Jordan Dargan Listen | 44:45 Transport emissions were down by just 1.2 per cent year on year, despite significant advancements in biofuel blending, and 'progress in the EV transition'. But failure to switch to active travel and public transport and over-reliance on private vehicles is 'eroding progress'. Heating emissions increased by 2.4 per cent; likely because 2024 was cooler than 2023. The longer Ireland waits to take meaningful action, the harder it will be to achieve climate commitments, Ms McCarthy said. 'Multiple global crises gave us a head start in our energy reduction efforts, where Covid-reduced travel, and energy price increases, plus warmer than average winters have all played a role in reducing our national emissions to date. Yet we still remain short of where we need to get to.' Climate action at a national and local level was needed, she said. 'As individuals, we need to embrace renewable technologies and energy efficiency efforts in our local areas, reduce our reliance on private vehicles and think more about how we are using our heat and electricity.' On a policy level, increased investment in renewable and grid technologies was necessary to increase renewables. 'We need to fully understand what supports are required for people making the transition, in particular for those least able to do so on their own. We need to attract people and businesses to develop and train in the skills necessary to build a bigger supply chain and we need more people taking up supports to improve their energy efficiency.'
Irish Times
12-05-2025
- Business
- Irish Times
How does retrofitting your house pay off?
Is retrofitting your home worth the money? Many people may be more concerned about the cost of it all and the payback it delivers than the environmental benefits. If you can afford to do it, investing in a retrofit could leave you quids in, data published last month shows. Energy-efficient homes sell for more than €100,000 more, according to data technology company Geowox, which specialises in home valuations . Homes with an A or B energy rating achieved a median sale price of €445,000 compared with €340,000 for less energy-efficient homes, according to the data for the first quarter of this year. The energy-based comparison includes all entries in the Irish residential property price register in the period, but excludes new homes to gain a more precise understanding of the energy-efficiency premium. READ MORE Energy-efficient homes commanded a 30.8 per cent sales premium, with growing demand of 15.7 per cent. That kind of uplift to the value of your home is pretty decent. Bringing your home up to an A or B rating can be pricey, however, so you'll want to know the benefits to you are worth the cost. [ Radical overhaul of retrofit grants under consideration Opens in new window ] Insulating your home, making it airtight, installing a heat pump and new windows and doors, for example, can cost anywhere between €25,000 to €75,000, depending on factors including the size of your home, whether it's terraced or detached, and what general condition it's in. Sustainable Energy Authority of Ireland (SEAI) grants can cover up to 50 per cent of the cost, but you'll have to pay the rest. That's a lot of money, even if it does add value to your home in the long run. The SEAI Home Energy Upgrade Loan Scheme offers rates through the main banks of about 3 per cent. This type of Government-backed loan offers a far more competitive rate than a regular home improvement loan. It enables those availing of SEAI grants in order to improve the Ber rating of their home to borrow between €5,000 and €75,000 over one to 10 years. The money is unsecured – which means, unlike as with a mortgage, the lender has no security, such as your home, against the loan. The loan must be used for retrofit works only, which must be carried out by an SEAI-registered provider. Bank of Ireland is offering this Home Energy Upgrade Loan at a variable rate of 3 per cent annual percentage rate (APR). A loan of €20,000 over five years with that bank will mean monthly instalments of about €360. The total cost of the credit is €1,532.20. Seven credit unions dotted around the country have been approved to offer these loans too, at rates from 2.9 per cent, depending on the lender. So what about the payback? Factors such as better attic and wall insulation and less draughty windows and doors mean your house is going to lose less heat, and what heat it does retain it will do for longer. [ Q&A: Do I need planning permission for my home energy upgrades? Opens in new window ] A more energy-efficient home and heating system will be cheaper to run too, so you'll save on your utility bills. A retrofit is unlikely to save you €360 a month on utility bills, the loan repayment in my example – but it can save you some money, and your home will be warmer and more comfortable at the same time. So, you don't have to sell your house to feel the benefits of retrofitting, but if you do sell, your house should achieve a 30 per cent higher value than a neighbour who didn't retrofit, according to the Geowox data. That advantage will certainly help some householders warm up to the idea of retrofitting.
Irish Times
09-05-2025
- Automotive
- Irish Times
Own a car? Here's how much it costs to keep it on the road
When it comes to cars, people spend an awful lot of time considering what they would like and how to finance its purchase. When it comes to looking at the running costs for the vehicle, most people pay very little attention to it. In fact, way too little time. Surveys in the UK have found that close to two-thirds of people see motoring costs as their second largest outgoing after the mortgage or rent – presumably those are the people without young children requiring child-minding. Almost exactly the same proportion of those surveyed, however, said they had no idea of what the actual annual bill was. In the old days, AA Ireland used to publish a fairly detailed rundown of the costs involved in keeping a car on the road. The arrival of electric vehicles and the continuing surge in the popularity of SUVs mean the variables are now so wide that compiling precise figures is difficult. READ MORE That doesn't mean we should just abandon budgeting in the same way we keep tabs on other areas of household costs, though. Fuel is one of the big points of difference these days. An electric vehicle will cost considerably less in fuel terms than one with a petrol or diesel engine. And that's important, as fuel will be one of the largest single items in your budget. The Sustainable Energy Authority of Ireland compiles data on fuel costs and figures for the first quarter of this year show that it costs €10.63 per 100 kilometres. That compares with €8.99 for a diesel engine and €3.37 for an electric vehicle. That EV cost presumes that 90 per cent of your charging is done at home using an economical smart meter night rate with the balance done using fast, high-powered public chargers. That's obviously an average figure and one that moves with the market all the time. As anyone who keeps an eye on fuel prices will know, there can be considerable variations from station to station. The figures are also based on a small family car size. If you're driving a bigger vehicle, such as Ireland's bestselling Hyundai Tucson for instance, the costs will be higher. Looking at a current price of around €1.70 a litre and assuming you drive around 16,000 km a year, that Tucson will cost you around €1,785 a year from your net income. Insurance is another variable. How much you pay will depend on the vehicle, your claims history, your mileage and where you live, among other things. Younger drivers know that they will pay a significant premium until they build up a driver history. Anyone with penalty points can also expect to pay more. And, of course, you will need to have the car taxed. These days, the motor tax you pay is based on the carbon dioxide emissions from the vehicle. For any car first registered since January 2021, this is based on the Worldwide Harmonised Light Vehicle Test Procedure – a standard that was brought in after the diesel engine emissions scandal. You will pay anywhere from €120 a year to €2,400, depending on the emissions level. That bestselling Hyundai Tucson, for instance, will cost you €280, which is around the level you can expect to pay for most small to medium family cars. Then, there is the cost for basic care and maintenance. Here, the general rule of thumb is that, on a like-for-like basis, the older the car, the higher the maintenance costs will be. This should be a factor you weigh up when making the original purchase decision. People can be tempted to let servicing slide but that's never a good idea, for two reasons. First, of course, there is an issue of safety. Comfortable as we are on the road when everything is going right, it can be easy to forget just how catastrophic things can be if they go wrong. Leaving that aside, cars tend to operate more efficiently (and therefore cheaply) when they are in good condition. Long-fingering a service can lead to problems building up, costing you more on the road and possibly a bigger bill later on when you do eventually get the car seen to. How much a service costs will depend on the car and where you go but the base service will cost around €125 for a petrol or diesel vehicle. That's before the cost of the oil change, replacement brake pads or whatever. EVs have less to check and might be as little as €80. These days, all cars will throw up dashboard information to tell you when a service is due but if for any reason it doesn't, you really should be getting your car serviced every year. Speaking of oil, it is quite astonishing how few people actually check the oil level in their car. Again, these days, a dashboard light will usually tell you when there is cause for concern but you really should be checking the oil level every time you check your tyres as part of a routine – and certainly before you undertake longer journeys. Low oil is one of the quickest ways of doing big damage to your engine. After oil, the other great gap in vehicle care is tyres. They are not cheap, especially if you are driving a bigger or higher-spec vehicle, but they are the one thing connecting you to the road. Talk to any mechanic, or the team at the National Car Test (NCT) centres, and they will tell you that balding or damaged tyres are among the most common issues they encounter. Lack of thread depth will put you and your passengers in much greater danger in wet or icy conditions, so it really is a false economy. You wouldn't take the same risk in any other area of your life – or at least, most of us wouldn't. And keep them pumped to the correct pressure. Poorly inflated tyres will impact the car's performance and increase your running costs. Manufacturers choose tyres to maximise the safety and performance of their vehicles. Motor industry sources say that, ideally, you should stick with those tyres and thread pattern when replacing the tyres due to wear and tear. Budgets are what they are, however, and there is generally wriggle room between tyres. This being said, cheaper tyres will be unlikely to last as long as the original spec. Whatever you do, most mechanics will advise using the same tyres on all four wheels. As a bare minimum, make sure tyres on the front match each other and the same for those on the rear. If tyres are wearing unevenly, that too can be dangerous and you should get your tracking checked. And, of course, if the vehicle is over four years' old, you will have to contend with the cost of putting it through the NCT every two years – or every year if the car is 10 or more years old. According to statistics from the NCT, roughly half of all vehicles countrywide fail their initial test. Of those who fail, around 10 per cent fail a retest. So, realistically, you are budgeting for more than the €60 testing fee, or the €40 for a retest. Parking fees (and fines) and other basic practicalities like keeping the car clean or washed also have to be factored in. If you want to get really picky, you can even include the cost of your driving licence – and, if you are older, the cost of getting a GP to certify that you are good to be let on the road for another one or three years. A survey by online marketplace found that average running costs for Irish motorists came to €220 a month last year. Fuel costs are marginally lower now but Central Statistics Office (CSO) data out yesterday says that motor insurance costs have jumped by almost 10 per cent in the past 12 months and by 13.4 per cent since the end of 2023. The same CSO consumer price index data says that repair and maintenance costs are up 3.5 per cent since April last year and by 6.2 per cent since the start of 2024. So, even if you think you have a fix on your budget for running your car, do bear in mind that it will have to be adjusted (almost always upwards) every year. Those charges are also on top of the price of financing the car in the first place or taking accounting of the impact of depreciation on its value while you own it. All told, finding the best way to buy your car is just part of the financial challenge of car ownership. But getting a reasonably accurate figure on what it is likely to cost you on a month-to-month basis to keep that car on the road is one way to reduce your stress over your personal finances. You can contact us at OnTheMoney@ with personal finance questions you would like to see us address. If you missed last week's newsletter, you can read it here .
