Written answer
Budget 2027
Government is examining supports to reduce home heating oil costs, but ruled out offsetting all market-driven increases and disclosed no pre-Budget measures.
416. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Finance whether consideration is being given, in advance of Budget 2027 and the winter heating season, to introducing a subsidy or other financial support to reduce the cost of kerosene for households dependent on home heating oil. [65190/26]
Comment on this
The Government is very conscious of the price increases in home heating oil as a result of the conflict in the Middle East.
It is important to state that the spikes in the price of home heating oil are not as a result of taxes, nor Government policy, but due to the wholesale market price of oil. The biggest economic intervention we could see is the de-escalation of conflict in the Middle East.
As I have said publicly, Government is examining the different levers available to it in relation to the cost of home heating oil. Policy options in respect of support measures will have due regard to the overall budgetary position as well as EU legislative frameworks; these include the EU Energy Tax Directive (ETD), the EU VAT Directive, and the EU Emissions Trading System for buildings, road transport and additional sectors (ETS2), among others.
It is worth reiterating that it is not possible to offset all of the increases in heating oil prices, which are driven by market factors, using the tax system.
As the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on the specifics of any measures that might be the subject of Budget decisions.