Irish party Aontú has put forward a pre-budget plan that would suspend carbon tax on petrol, diesel, agricultural diesel, and home heating oil whenever international fuel prices pass €1.90 per litre. Party leader Peadar Tóibín says the move would stabilise pump prices. The proposal is part of a wider submission that also includes cutting VAT on electricity from 9% to 5% and ending the ESB dividend to the Government in 2027, which the party claims would reduce household electricity bills by around €100 a year. The carbon tax element is the most notable for climate policy. It effectively makes the tax countercyclical, removing the carbon price at exactly the moment global fuel prices are high. That reduces the incentive to switch away from fossil fuels during price spikes and weakens the revenue base that supports climate spending. It also raises questions about how Ireland would maintain its carbon tax commitments under EU rules and national climate law.
