A new carbon tax of €15 per Tonne was announced in the 2010 Budget. The tax was applied to Petrol and Diesel from midnight on Budget Day, 9 December 2009.
The price of petrol increased by 4.2c a litre and the price per litre of diesel increased by 4.9c.
From 1st May 2010 the carbon tax will apply to Kerosene, Marked Gas Oil, Liquid Petroleum Gas, Fuel Oil and Natural Gas. VAT will also be charged on the carbon tax.
From May 1st 2010 – the new carbon tax will result in a price increase of Kerosene (Heating Oil) by 4.3 cent a litre including VAT. This will mean an extra €43 Euro on 1000 litres – which is an increase of approx 6.5%
Coal and peat remain unchanged but are subject a commencement order with September 2010 being mentioned as a likely date for this commencement order.
The exemption of solid fuels follows extensive lobbying which focused on the potential for loss of revenue from cross-border trade/smuggling.
Revenue from the carbon levy is expected to be €250 million in 2010.