Oil markets are responding to developments arising from the conflict in the Middle East and the Government is extremely conscious of the impact that the global spike in oil prices is having on people and businesses across the country. Lower relative taxes, compared to petrol and diesel, make Irish home heating more sensitive to price increases in the international wholesale benchmark price.
In terms of home heating oil, the NORA levy of 2 cent per litre has been reduced to a nominal amount from 1 April 2026 until 31 July 2026. On 24 March 2026 it was announced the Fuel Allowance season will be extended by 4 weeks until 1 May 2026 due to the recent increases in fuel costs. Government will also defer the planned increase in carbon tax, scheduled for May 1st. This will impact green diesel and non-propellant fuels such as kerosene heating oil, natural gas and solid fuels.
The National Energy Affordability Taskforce has been established by Government to identify, assess and implement measures that will enhance energy affordability for households and businesses while delivering key renewable commitments and protecting security of supply and economic stability. This will be a crucial element of the Government’s work to improve competitiveness, complementing the Action Plan on Competitiveness and Productivity.