Isramart : Republic of Ireland Government announces Carbon Tax

Isramart news:
This week's Irish Budget saw the introduction of a carbon tax, which will apply to all carbon fuels sold and consumed in the Republic of Ireland, including heating oil, LPG, mains gas and solid fuel.

Transport fuels (e.g. diesel and petrol) were affected immediately by the announcement, whilst the application of the new tax to home heating fuels has been deferred until 1 May 2010, after which:

* The price of a pack of peat briquettes will rise from €3.85 to €4.24
* A year's supply of natural gas for a typical home in the Republic of Ireland will increase from €810 to €857.86
* The total cost of a 1,000 litres order of Home Heating Oil will increase by €52.15 to €662.15.

Speaking after the announcement of the Carbon Tax, Damien Keenan from OFTEC in the Republic of Ireland said, "The incidence of fuel poverty had declined over recent years as a result of rising household income levels and improved housing standards. With increased energy costs now affecting all fuels and reduced disposable income the extra cost of this further tax on heating oil could force more oil users into fuel poverty".

OFTEC is advising homeowners and households in the Republic of Ireland with oil heating systems, to seek advice on upgrading their heating appliances and adding full controls to their system in order to maximise the efficiency of the system, reduce oil usage and save money. Grants for upgrade may be available from SEI under their Home Energy Savings Scheme.

"The latest independent energy figures show that consumers using condensing oil boilers can save up to 18% or €290 per annum. Consumers looking to have a new boiler installed or replaced should insist on a condensing boiler and make sure their technician is OFTEC Registered to ensure competence", added Damien.

Bizarrely, the very same budget also saw the announcement of a reduction in excise duty on alcohol, whilst the cost of cigarettes and tobacco products remained unchanged.