Consumers Warned To Buy Heating Fuel Ahead Of Carbon Tax Hike

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Consumers have been warned to buy their heating fuels now, ahead of carbon tax hikes coming into effect at the end of this month.

The cost of gas, home-heating oil, coal and briquettes will rise on 1st May, due to a rise in the tax. There is no carbon tax imposed on electricity, but the Public Service Obligation (PSO) Levy that is in place, mainly to cover the cost of subsidising wind energy, rose by €50 a year in October 2020.

The higher carbon tax comes at a time when most energy providers have increased the cost of domestic gas. Budget 2021, announced in October 2020, saw the carbon tax rise from €26 per tonne, to €33.50 per tonne. The implementation of higher carbon tax on petrol and diesel was immediate, while the increase in heating fuels was delayed until May of this year.