Government to scrap carbon tax hikes on kerosene and heating oil

Taoiseach Micheál Martin has said the Government will likely remove all carbon tax increases on kerosene and home heating oil for the remainder of the current term, as part of Budget 2027.

Speaking at the Fianna Fáil Cairde Fáil dinner in Dublin, Martin also confirmed that double Christmas payments will be made to those receiving social welfare.

The coalition is leaning towards halting further carbon tax rises on kerosene, and Martin indicated the same direction for home heating oil, citing the ongoing energy pressure and the broader geopolitical conflicts affecting oil supplies.

When asked about funding retrofitting measures from carbon tax revenue, the Taoiseach noted the yield from heating oil tax is relatively low and that alternative funding is being explored through bilateral ministerial meetings.

Martin stopped short of ruling out energy credits in the budget, saying new measures could emerge at the last minute. He also denied reports of public spending cuts, insisting on a 6 % growth in expenditure and highlighting planned increases in disability payments, childcare initiatives, and a public service pay agreement.

Social protection rates are expected to rise by €10 a week, and the fuel allowance is likely to be a weekly payment rather than a lump sum.

Source: Irish Examiner. Photo: Picography / Pexels.