Budget 2025: Here are the things that will increase in price from midnight 

Minister for Finance Jack Chambers with Minister for Public Expenditure, National Development Plan Delivery and Reform, Paschal Donohoe before they presented the budget at Government Buildings. Picture: Leah Farrell

The Government vowed that Budget 2025 would be one that tackles cost-of-living challenges, but it comes during a month when consumers face a range of hikes across the board.

While this cost-of-living package totals €2.2bn to put money back into people’s pockets at a time when inflation is at its lowest level in years, households have still faced huge pressure in recent years with further price rises still looming on the horizon. 

These include:

• A carbon tax rise 
• Health insurance hikes 
• Energy bill rises 

Minister for Finance Jack Chambers told the Dáil that the price of a pack of cigarettes would see an excise duty increase of €1 from Wednesday, with a “pro-rata increase on other tobacco products”.

“This will bring the price of cigarettes in the most popular price category to €18.05 and supports public health policy to reduce smoking levels in Irish society,” he said.

Furthermore, a long-mooted increase to carbon tax on petrol and diesel will take effect from next Wednesday, October 9, as planned, adding around 2c a litre on motor fuels.

Mr Chambers said: “The rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €56.00 to €63.50 from October 9 as per the trajectory set out in the Finance Act 2020.” 

The lobby group for petrol stations, Fuels for Ireland, was sharply critical of the Government over taxes on fuels, claiming that the average driver will see an additional cost of €12 to fill their tank when all the Budget measures are taken in.

“Today's budget claimed to focus on reducing the cost of living but the Government is actually increasing costs on consumer with its measures ensuring that Ireland is one of the most expensive countries in Europe for diesel and petrol,” its chief executive Kevin McPartlan said.

Another sting in the tail, although not referenced in the budget speeches, is the application of a new levy on energy customers which took effect Tuesday.

The PSO levy, set by the energy regulator, sees an extra €3.52 a month added to our electricity bills. The same levy had been set at zero last year.

Sinn Féin MEP Lynn Boylan has said that with the PSO levy and network charges, households will be hit by around €140 a year in extra costs. This is despite a new €250 energy credit set to take effect in the coming months for all households.

Health insurance customers are also facing hikes from this month, with VHI premiums rising from 3.5% and Laya Healthcare premiums up 6.5%.