Climate measures unveiled in Budget 2024 today (Tuesday, October 10) will result in an increase in the price of transport fuel – including petrol and diesel – from midnight.
The Minister for Finance, Michael McGrath, detailed a number of climate-related tax measures in his budget today, including that the “rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €48.50 to €56 from October 11”.
This means an increase of €1.28 on a 60L fill of petrol and an increase of €1.48 on the cost of a 60L fill of diesel.
The latest measures will also result in an increase in the price of home heating fuels from May 1, next year, which will see a 12.5kg bale of peat increase by 20c, a 40kg bag of coal increase by 90c and a 900L tank of kerosene jump by €19.40.
Minister McGrath said: “As per the commitment in the Programme for Government, all of the revenue raised from this increase in carbon tax will be used to ensure the most vulnerable are protected from unintended impacts of the tax increase, to part fund a socially progressive national retrofitting programme, and to encourage and support farmers in the green transition.”
The Programme for Government has commited to spending €9.5 billion using revenues raised by the planned increases in the carbon tax to 2030.
Revenue raised by these increases in carbon tax will be used to:
- Ensure that the increases in the carbon tax are progressive by spending €3 billion on targeted social welfare and other initiatives to prevent fuel poverty and ensure a just transition;
- Provide €5 billion to part-fund a socially progressive national retrofitting programme;
- Allocate €1.5 billion of additional funding to encourage and incentivise farmers to farm in a greener and more sustainable way.
According to the Department of Finance, next year, €113 million in carbon tax funding will be provided to the Department of Agriculture, Food and the Marine (DAFM).
This is a €32 million increase in funding year-on-year.
The department said that this increased funding will be used to fund the Agri-Climate Rural Environment Scheme (ACRES).
Elements of the carbon tax funds allocated to DAFM will also be earmarked to support the rapid scale-up for an anaerobic digestion (AD) industry in Ireland according to today’s budget documents.
The Minister for Finance had acknowledged in Budget 2024 that that the price of petrol and diesel for motorists had increased in recent weeks, “driven by volatility in international oil prices”.
Minister McGrath said he had decided to “defer the final tranche” of fuel excise increases which were due to happen on October 31.
“I will restore the outstanding amounts of 8c on petrol, 6c on diesel and 3.4c on marked gas oil (green diesel) in two equal instalments on April 1, 2024 and August 1, 2024,” he added.