Carbon tax cuts 'a relief' for thousands in Offaly, TD says

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, a Fine Gael TD has said.

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

Deputy Clendennen said: "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.

“People across Offaly 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. Here in Offaly, in a town like Ferbane at the last Census in 2022, over 43% of households were reliant on home heating oil."

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 Clendennen 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. Recently announced measures such as the €2000 Boiler Scrappage Scheme and the €600 Battery Storage Grant will help households in transitioning from fossil fuels and shows that Government is committed to continuing to reducing the cost of energy.