Budget good and bad for motorists

Extension of scrappage scheme, but increased costs for petrol and diesel in the Budget.

Words Shane O' Donoghue Published 7 December 2010

There was good news and bad in the 2011 Budget. Despite the announcement that there is to be an additional four cents added to the price of a litre of petrol and two cents to the price of a litre of diesel, the fact that the Government scrappage scheme is due to be extended until June 2011 is likely to be welcomed by the industry.

The scheme will now have a maximum Government contribution of €1,250 - compared to the current maximum of €1,500.

Minister Lenihan, in his Budget speech said, "in the light of its success, the car scrappage scheme introduced last year will be extended for a further six months to the 30th of June 2011. The VRT relief provided in this period will be up to a reduced maximum of €1,250."

There is also good news for retailers of hybrid and flex fuel vehicles, as the scheme that allowed up to €1,500 off the VRT of these cars is to be extended until the end of 2012.

Plug-in hybrid vehicle technology will also be given a boost with the news that there will be up to €2,500 VRT rebate for such vehicles until the end of 2012.

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