Minister for Finance Jack Chambers and Minister for Public Expenditure, National Development Plan Delivery and Reform Paschal Donohoe delivered Budget 2025 on Tuesday 1st October, which is a budget that sees the Government attempt to protect living standards and maintain a budget surplus to safeguard Ireland’s future against the unexpected. The total budget package is €8.3 billion.
What does Budget 2025 mean for the motorist in terms of public transport, fuel prices, motor tax and electric vehicles? At the AA, we have broken it down for you:
Public Transport and Travel in Budget 2025
This year sees a significant investment in public transport and infrastructure in budget 2025. This includes the Bus Connects program, which aims to improve bus services in urban areas and promote sustainable travel.
The Young Adult Leap Card will now allow 24 and 25-year-olds to travel at a 50% discount on public transport. This is part of a broader effort to make travel more affordable and encourage the use of public transport among young adults, this will be continued until the end of 2025.
Fuel Prices and Carbon Tax
Carbon Tax on petrol and diesel will increase from 9th October bringing the cost per tonne of CO2 from €56 to €63.50. This will add roughly 2 cents per litre at the pump. This measure will not only impact individual motorists but also businesses relying on fuel-intensive transportation. Jennifer Kilduff, Head of Marketing and PR, The AA (Ireland) says “This anticipated carbon tax increase measure was well sign posted over the past few months. What does this mean for the motorist? This will add roughly 2 cents per litre of petrol and diesel at the pump. This measure will not only impact individual motorists but also businesses relying on fuel-intensive transportation.”
A €300 lump-sum payment will be provided to recipients of the Fuel Allowance as part of the broader measures to support individuals facing rising energy costs.
Motor Tax
Motor Tax has no significant changes in this year’s budget, however, motorists driving less fuel-efficient or high-emission vehicles will indirectly feel the effects of rising carbon taxes.
Motor Insurance Changes
The motor insurance insolvency levy will be reduced from 1% to 0% from the 1st of January 2025. On average customers may see a small reduction in premium. For example, if the average premium is €500-700 customers will save €5-7 annually.
