Mineral Oil Tax on vehicle gas (MOT VG)
Biogas is defined as gas that has been obtained solely from biomass. A relief from the carbon component of MOT VG is available for the portion of vehicle gas that is composed of biogas. This means that biogas supplied for use as a vehicle fuel is subject to the non-carbon component of MOT VG only.
From 1 May 2023 the rate of the biogas relief is €8.77 per MWh at GCV (€9.73 per MWh at NCV). The overall rate of MOT VG is reduced by the carbon component rate. This gives an effective rate of €0.59 per MWh at GCV (€0.65 per MWh at NCV) on biogas.
The relief from the carbon component of MOT VG for biogas is applied at source by the supplier. The supplier claims the relief by declaring the amount of biogas supplied and paying the non-carbon component rate using Form MOT VG.