Carbon tax reductions a relief for thousands of households and businesses in Cork

The Government’s decision to reduce carbon tax on home heating oil and gas from today will come as a relief for thousands of households and businesses, Fine Gael TD John Paul O’Shea has said.

The measure, announced in last week’s Budget, will see carbon tax reduced to its 2023 rate.

Importantly, to give certainty to households and businesses and to embed this real reduction in the cost of living, the Tánaiste announced that these rates will be maintained for the lifetime of the government.

The decision not to proceed with future increases on these products will ultimately result in the carbon tax rate being less than half of what was set out originally.

Welcoming the move, Deputy O’Shea said:

“People across Cork and throughout the country are facing considerable pressure from rising energy costs, driven in large part by the ongoing conflict in the Middle East.

“For many households and businesses, particularly in rural Ireland, heating oil is important.

“These reductions, which come into force from today will provide welcome relief and greater certainty for families and businesses as we head into the winter.

“Approximately 500,000 homes that depend on heating oil, along with more than 600,000 households using natural gas, stand to benefit from these measures.

“Importantly, the Government is not simply postponing another increase for these households. We are reducing the carbon tax rate on home heating oil and natural gas and intend to maintain those lower rates for the lifetime of this Government.”

The Government has also deferred planned carbon tax increases on petrol, diesel, green diesel and solid fuels until May 2027, ensuring that additional carbon tax increases will not add to fuel costs this winter.

Deputy O’Shea said this decision was especially important for farming communities, hauliers and rural businesses, which remain particularly exposed to fluctuations in fuel prices.

He also highlighted the Government’s continued commitment to ring-fencing revenue raised from carbon tax increases since 2020 to support targeted social welfare measures, alleviate fuel poverty, fund home retrofitting and help farmers adopt more sustainable practices.