Carbon tax comes into effect today

The Government's carbon tax on oil and gas comes into effect today.

The carbon tax was one of the cornerstones of the Greens' shopping list when it entered government.

Petrol rose by 4c a litre and diesel by 5c last December.

Today, the carbon tax is imposed on gas and oil and will add around €43 to filling a 1,000-litre oil tank and €41 to the average annual gas bill.

Chief Executive of the Consumers Association Dermot Jewell said the tax would hit already struggling homeowners.

"Every element of additional cost placed on (people) means their buying power, their ability to support other initiatives, fades even more," he said.

Small and medium business group ISME said the tax would increase the cost of gas by 6% for companies.

The remaining fuels - coal and peat - will be taxed from September.