Funding NORA - The NORA Levy
As the national stockholding agency NORA bears the costs of purchasing, financing and holding strategic oil stocks other than those stocks held by oil companies. NORA receives no funding from the Exchequer. It was funded by way of a levy on certain petroleum products. S.I No. 567 of 2007 provided that with effect from 1 November 2007 the rate of the levy on relevant disposals of motor spirit, gasoil, diesel and kerosene (excluding jet fuel of the kerosene type) and fuel oils was ser at €0.01 (one cent) per litre. Under S.I 220 of 2009 the rate of the levy was set at €0.02 (2 cent) per litre with effect from 1st October 2009.
Liability to pay the NORA levy
The levy is paid by oil marketing companies and oil consumers. To ensure accuracy, the Department validates data supplied by oil companies/oil consumers and also cross-checks this data against Returns of Oil Imports provided by the Customs authorities to ensure that all companies/consumers that may be liable to pay the NORA levy are included.
Calculation of Oil Companies NORA levy obligations
Information in regard to oil products is sought on a monthly basis by the Department from oil companies/oil consumers. This provides the basis for the levy calculation by the Department. Statistical returns are provided by the companies/consumers detailing stocks held at the beginning and at the end of each month.
The oil products involved are petrol, kerosene, gas oil, DERV and fuel oils. Details are also provided of the quantities imported and exported, wholesale sales and purchases, and retail sales and own consumption, together with details of any quantities used for marine or aviation purposes. The monthly levy due to NORA by each company/consumer is calculated by the Department on the basis of a company's retail sales plus own consumption, less sales to other oil companies, less disposals of fuel for marine or aviation purposes. (See also Exemptions from the NORA levy)
Having calculated the levy, the Department advises NORA of the amounts due by each company. NORA then invoices the companies/consumers directly for the amounts involved.
Exemption from the NORA levy
Exempt Fuels
Under the NORA Act aviation fuels and marine bunkers are exempt from the NORA Levy.
Exempt Companies
In addition, oils used by the consumer companies (i.e. where the oil is not for resale) who maintain more than 55 days of their average consumption in the proeceding year are exempted from the Levy.
Audits
In addition to validating data, regular audits of Oil Companies and Oil Consumers are carried out by the Department to ensure compliance with the NORA levy. The audits are carried out under the NORA Act 2007 which provides for the inspection by Departmental officers of premises, tanks and storage facilities together with records relating to sales or consumption of products.