It has been confirmed that diesel and petrol prices at filling stations nationwide will increase from midnight tonight, Tuesday, October 8.
In announcing Budget 2020, the Minister for Finance, Public Expenditure and Reform, Paschal Donohoe, outlined: “There is nearly cross-party support to increase the price of carbon from €20 to €80/t by 2030.”
However, Minister Donohoe noted that this will be done incrementally and said the Government is committed to “a €6/t increase as a first step towards this target”.
The move will see the carbon tax increase from €20/t to €26/t.
This increase will apply from midnight tonight to auto fuels, but its application to other fuels will be delayed until May 2020, after the winter heating season.
The minister said: “This measure will raise €90 million all of which will be ring-fenced to fund new climate action measures.”
He noted that the Government plans to: “Provide additional relief through the Diesel Rebate Scheme to hauliers to compensate the sector for the increased cost of fuel.”
In announcing the increase, the minister outlined: “Climate change is without doubt our defining challenge.
“We need to prove that we can grow the economy, while reducing our carbon footprint,” he concluded.
Social protection
In announcing other supports, Minister Donohoe said: “€365 million will also be provided for extra social protection expenditure to support those at risk of loosing their jobs with a further €45 million being made available to assist people to transition to new work.
“The Government stands ready to do more if required.
“If the economic impact of a no-deal is more severe than forecast, I am prepared to use resources that will otherwise have been dedicated to the rainy day fund,” he concluded.