DUBLIN — Tánaiste Simon Harris has signaled that the Irish Government is considering treating home heating oil differently from other fossil fuels when deciding on planned carbon tax changes in the upcoming budget.

Speaking on RTÉ’s Morning Ireland on Friday, Mr Harris expressed particular concern over the impact of energy costs on domestic households, noting that a targeted policy move on home heating oil could offer noticeable relief for families filling oil tanks ahead of the winter season.

Under current fiscal plans, carbon tax rates across fossil fuels—including petrol, diesel, gas, coal, peat, and heating kerosene—are scheduled to rise incrementally toward €100 per tonne by 2030. In April, the Cabinet postponed a scheduled May increase to €71 per tonne, deferring its implementation to October 14, days after the budget presentation scheduled for October 6.

Mr Harris referenced options outlined in a Department of Finance Tax Strategy Group paper published earlier in the summer. The paper detailed potential choices for ministers, including extending the timeline for tax increases or differentiating between specific fuel products rather than applying a uniform rise across all consumer fuels.

While reiterating support for the core principles of the carbon tax—which generates around €1.1 billion annually to fund climate measures, retrofitting programs, and targeted welfare supports—the Tánaiste noted that the original trajectory was set prior to recent global energy price spikes. He stated that the coalition would assess all available levers, including potential changes to excise duties and expansions to social welfare fuel allowances, to relieve pressure on household budgets.