Bernard Durkan (Kildare North, Fine Gael)
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Question 128: To ask the Minister for Finance the cost increase implications in respect of all energy sources affected by the carbon tax; his expenditure proposals for the revenue accruing from the tax; and if he will make a statement on the matter. [23436/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I announced in the Budget that a carbon tax at a rate €15 per tonne would be introduced on fossil fuels. It should be noted that a carbon tax came into effect on 10 December 2009 in respect of petrol and auto-diesel and from 1 May 2010 to kerosene, marked gas oil (also known as 'green diesel' or 'agricultural diesel'), liquid petroleum gas (LPG), fuel oil and natural gas. The application of the tax to coal and commercial peat is subject to a Commencement Order.

It is estimated that the carbon tax, inclusive of VAT, will yield approximately €250 million in 2010 and €330 million in a full year. The revenue will, amongst other things, be used to boost energy efficiency, to support rural transport and to alleviate fuel poverty.

The impact on individual fuels in terms of nominal and percentage price changes is illustrated as follows:

* Price of petrol and auto-diesel in December 2009 when carbon tax was introduced for that fuel.

** Average annual household consumption