Darren O'Rourke
Ceist:149. Deputy Darren O'Rourke asked the Tánaiste and Minister for Finance the measures he intends to take to address the cost of home heating oil; and if he will make a statement on the matter. [38914/26]
Amharc ar fhreagraTuesday, 26 May 2026
Ceisteanna (149)
Freagraí scríofa
The Government is very conscious of the price increases in home heating oil as a result of the conflict in the Middle East.
It is important to state that the spikes in the price of home heating oil are not as a result of taxes, nor Government policy, but due to the wholesale market price of oil.
Government extended the fuel allowance season, which would have normally run for 28 weeks, by a further four weeks in order to ease the financial burden on households. This resulted in additional payments of €152 to each of the nearly 470,000 fuel allowance recipients, who are most at risk of fuel poverty.
It meant that a typical household receiving the fuel allowance will have received €1,216 over the course of the fuel allowance season.
Conscious of the cost pressures being experienced by households owing to the conflict in the Middle East, I have already deferred the planned increase in carbon tax on home heating fuels, which was due to occur on 1 May, until 14 October.
Carbon tax remains an important part of Ireland’s overall commitment to tackling climate change and to lessen Ireland's dependence on fossil fuels, with successive annual budgets providing additional funds for targeted social protection payments, residential and energy efficiency measures, as well as funding to encourage green farming practices.
As of Budget 2026, the Government has allocated over €4.2 billion in carbon tax revenue for these purposes since 2020. ESRI analysis consistently shows the lower income deciles are better off as a result of the social protection measures funded by the increased carbon tax.
In Budget 2026, over €1.1 billion million was allocated to climate action measures and to ensure the most vulnerable are protected from the unintended impacts of the increase. This was an increase on the 2025 allocation, and included funding of -
• €566 million for retrofitting programmes, Just Transition and ODA-Green Climate Fund;
• €350 million for targeted social welfare interventions, such as the fuel allowance; and
• €173 million for green & sustainable farming measures.
Our need to decouple from fossil fuel dependence and achieve energy security is even more apparent now given the levels of volatility in international fuel markets. Ireland’s long-term commitment to tackling climate change remains strong.