Pearse Doherty (Donegal, Sinn Fein)
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333. To ask the Minister for Finance if he will consider the maximum removal of excise home heating oil given the fact that home heating oil hit its highest price on record; and if he will make a statement on the matter. [29358/26]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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336. To ask the Minister for Finance the measures that will be introduced to reduce the costs of kerosene home heating oil taking into account the additional financial pressures on households due to the increased costs of such fuel; if he will make a statement on the matter. [29377/26]

Simon Harris (Wicklow, Fine Gael)
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I propose to take Questions Nos. 333 and 336 together.

The Government is very conscious of the substantial price increases in home heating oil as a result of the conflict in the Middle East.

It is important to note that the spikes in the price of home heating oil are not as a result of taxes, nor Government policy, but due to the wholesale market price of oil. Mineral Oil Tax is charged on a volumetric basis. It does not change when the wholesale price increases or decreases.

With regard to Kerosene, there is no non-carbon component of Mineral Oil Tax applying to heating oil. The Mineral Oil Tax applying to Kerosene is fully comprised of the carbon charge (carbon tax). Based on 20 April prices for kerosene, carbon tax accounts for 10% of the total retail cost of a litre of kerosene.

To protect those most at risk of fuel poverty, Government has extended the fuel allowance season, which would have normally run for 28 weeks, by a further four weeks in order to ease the financial burden on households. This will result in additional payments of €152 to more than a quarter of all households.

For reference, a typical household receiving the fuel allowance will have received €1,216 over the course of the fuel allowance season.

Furthermore, conscious of the pressure being experienced by households owing to the conflict in the Middle East, the Government has announced the deferral of the next planned increase in carbon tax on home heating fuels, which was scheduled for 1 May, until 14 October.

Carbon tax remains an important part of Ireland’s overall commitment to tackling climate change and to lessen Ireland's dependence on fossil fuels, with successive annual budgets providing additional funds for targeted social protection payments, residential and energy efficiency measures, as well as funding to encourage green farming practices.

As of Budget 2026, the Government has allocated over €4.2 billion in carbon tax revenue for these purposes since 2020. ESRI analysis consistently shows the lower income deciles are better off as a result of the social protection measures funded by the increased carbon tax.

Our need to decouple from fossil fuel dependence and achieve energy security is even more apparent now given the levels of volatility in international fuel markets. Ireland’s long-term commitment to tackling climate change remains strong.