Oil importers have lodged a complaint with the EU, alleging illegal state aid by the Government.

The European Commission will assess the case to see if it justifies further scrutiny.

Levy

Fuels for Ireland, which represents Irish importers and wholesalers, believes that oil-based energy consumers have had responsibility for the funding of the Government's Climate Action Fund placed solely upon them, through a carbon levy.

The group believes that its members have been put at a competitive disadvantage as a result of the move, which has not similarly penalised the coal and peat sectors, which also generate greenhouse gas emissions. 

"We are determined to play our part in addressing our climate and environmental emergency and funding Ireland's Climate Action plans," said Fuels for Ireland chief executive Kevin McPartlan.

"We have made the commitment to be carbon neutral by 2050 but we cannot stand by and allow our consumers to be the only ones paying for Ireland's Climate Action Fund," he added.

Fuels for Ireland's members includes some of the largest forecourt operators in the country, including Applegreen, Circle K, Maxol, Top and Emo.