Increase on home heating fuels in effect from today

Increase on home heating fuels in effect from today

EMBARGOED TO 0001 MONDAY JANUARY 24 Undated file photo of a person using a central heating thermostat. Some 36% of people in the country say their energy bills are unaffordable, a survey for Citizens Advice Scotland (Cas) by YouGov found. Issue date: Monday January 24, 2022.

A carbon tax increase will come into effect today on home heating, meaning many consumers will see further hikes to their gas or oil bill.

This tax hike comes as energy prices continue to soar, with the price of gas in every home likely rising by €1.40 per month, and home heating oil by €1.50.

The amount of tax charged per tonne of carbon rises from €26 to €33.50.

On Wednesday, a motion was brought to the Dáil to stop the carbon tax however it was defeated.

However, the Government has insisted that measures have been introduced to offset today's increases such as the €200 electricity credit, a VAT cut to gas and electricity and they have gotten rid of the €58 public service obligation levy.

The profits made off the carbon tax are to be used to address fuel poverty and cover measures that help communities go greener.

Ireland first introduced a carbon tax in 2010 which now applies to kerosene, marked gas oil, liquid petroleum gas, fuel oil, natural gas and solid fuels. The Government has pledged to steadily increase the tax until 2030 when it is forecast to reach €100 per tonne.

Meanwhile, turf talks are ongoing to decide whether on not the sale of turf should be restricted from September.

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