24.4.12

Carbon Tax on Home Heating Oil from 1 May 2012


In 2010 a carbon tax was introduced in Ireland. The carbon tax applies to kerosene, marked gas oil, liquid petroleum gas, fuel oil, and natural gas. The tax does not currently apply to solid fuels.
In Budget 2012 carbon tax was increased by €5 to €20 per tonne of CO2 emitted on fossil fuels. The increase applies to petrol and auto-diesel from midnight, 6 December 2011. The increase will apply from 1 May 2012 to kerosene, Marked Gas Oil, Liquid Petroleum Gas (LPG), fuel oil and natural gas. (This is to take account of the effect the increase would have on home heating costs over the winter months.) The carbon tax does not apply to solid fuels, so there will be no increases for peat or coal.