Ireland's carbon tax on fuel: proposed increases to 2030 for petrol, diesel, and home heating oil

Ireland's carbon tax on fuel is set to rise each year through 2030 under the Finance Act 2020. The Tanaiste Simon Harris confirmed the schedule in a recent parliamentary response. For petrol, the increase totals 8.1 cents per litre including VAT, with annual rises of 2.1 cents for the next three years and 1.8 cents in 2029. Auto-diesel will see a total increase of 9.6 cents per litre, with annual rises of 2.5 cents for three years and 2.1 cents in 2029. Home heating kerosene will rise by 10.7 cents per litre total, and green diesel by 11.2 cents per litre total, with annual increments through 2030. The government says the tax is a central pillar of Ireland's climate policy, providing a long-term price signal to shift away from fossil fuels. Revenue from the tax goes to social welfare, agri-environmental schemes, and retrofitting programs. Over 4.2 billion euros in carbon tax revenue has been allocated since 2020. Budget 2026 allocated over 1.1 billion euros for climate action measures, up 163 million from the previous year. The ESRI analysis cited claims lower income households are better off due to social protection measures funded by the tax. Sinn Fein opposes the tax, arguing it burdens rural households with no alternative to cars and kerosene heating.