The NORA Levy
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 is funded by way of a levy of 0.476 cent per litre imposed on oil consumers and by oil marketing companies. This levy has remained unchanged since NORA's establishment in 1995.
Liability to pay the NORA levy
The levy is paid by oil marketing companies /oil consumers. For the purposes of the Levy "an oil company" means, with respect to any month, a company that in any of the preceding twelve months imported into the State or purchased from Ireland's only refinery at Whitegate, total quantities of not less than two tonnes of petroleum oils for own consumption or resale in the State.
"An oil consumer" is defined as any person other than an oil company, who, in any of the preceding twelve months, purchased not less than 1,000 tonnes of petroleum oils for own consumption in the State.
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 sought on a monthly basis by Oil Supply Division from oil companies/oil consumers under the Levy Return 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 monies owed.
Exemption from the NORA levy
Exempt Fuels
Aviation Fuels and marine bunkers are exempt from the Levy under Regulation 6 of the European Communities (Minimum Stocks of Petroleum Oils) Regulations, 1996. The exemption in regard to marine bunkers is underpinned by Article (3) of the 1968 directive. Aviation fuel is exempt from excise duty.
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 - Regulation 6(5).
Audits
In addition to validating data, regular audits are carried out by the Oil Supply Division to ensure compliance with the NORA levy. The audits are carried out under the European Communities (Minimum Stocks of Petroleum Oils) Regulations 1995, which provides for the inspection by Departmental officers of premises, tanks and storage facilities together with records relating to sales or consumption of products. Oil Consumer Companies claiming exemption based on holding 55 days of oil stocks are also subject to auditby the Oil Division.