herald

Sunday 8 December 2019

Carbon tax increase to be set at €6 every year for a decade

Pump prices are expected to rise
Pump prices are expected to rise

Carbon tax could be raised €6 every year for the next decade under Budget 2020 plans.

Finance Minister Paschal Donohoe intends to outline a "trajectory" of increases that will ultimately bring the charge from €20 per tonne of carbon to €80 in 2030.

By the time the repeated increases have hit the price of a 60-litre fill of diesel, it will have risen €13.76, while petrol will be up €15.72 including VAT.

Filling a 900-litre tank with home-heating oil will jump €207.

A bag of briquettes will cost €2.08 more and a 40kg bag of coal will come with a €9.60 tax bill.

Mr Donohoe is set to begin this 'journey' tomorrow when he announces the first products to be hit will be petrol and diesel.

A €6 per tonne hike would add around €15 to a domestic tank of kerosene.

Petrol and diesel prices are expected to go up by close to 2c per litre from midnight tomorrow.

It comes as a new study suggests nearly half of all households do not realise they are already paying carbon tax.

Awareness

The tax was introduced in 2010 and applies to kerosene, marked gas oil, liquid petroleum gas, fuel oil, natural gas and solid fuels.

Coal will cost more
Coal will cost more

Work carried out by iReach Insights on behalf of the Irish Offshore Operators' Association (IOOA) shows that 49pc of people have no awareness of the extra charge on their purchases.

The study of 1,000 people shows the average household is spending €112 on home energy every month, while €113 is allocated for fuel on transport.

The first Offshore Energy Index found most people do take steps to save energy at home (85pc), with over-55s more likely to conserve than young adults aged between 18 and 34.

IOOA chief executive Mandy Johnston said the index will over time help inform people on the role individuals have to play "to bring about real change to conserve energy".

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