Agri-diesel to cost more under new carbon tax

A CARBON tax of €15 per tonne was introduced on fossil fuels, and applied to petrol and diesel since last Thursday. It will apply to kerosene, marked gas oil (for agricultural use), liquid petroleum gas, fuel oil and natural gas from May 1, 2010.

Agri-diesel is expected to cost 4.7 cent per litre extra from May, estimated by IFA ú Padraig Walshe to add €13m per year to farm production costs.

The Irish Dairy Industries Association (IDIA) warned that the carbon tax will undermine the competitiveness of Irish exporters, give a price advantage for imported food products, and place more jobs at risk in the food sector.