Carbon tax rise sees increase in cost of home heating

Home heating costs will rise as a carbon tax hike takes effect from today.

The move, which was announced in the budget last October, will see increased carbon tax on home-heating oil, gas, coal and briquettes.

Darragh Cassidy from Bonkers.ie says the cost of an average households annual gas bill will go up by around 14 euro a year.

He said: "What it means now is that the average household gas bill will be going up by €61 a year due to the carbon tax. That's an extra €14 than what it was beforehand.

"If you like to use briquettes, then around 60c in carbon tax goes on briquettes and if you use home heating oil and have a 900 litres tank, €65 for every fill."

The increase in the tax also adds around €2.73 to a 40kg bag of coal.

The carbon tax doesn’t apply to electricity, where the PSO levy is applied.