281. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the current status of the carbon tax increase on home heating fuels that was deferred from 1 May 2026 to 14 October 2026; the average effect of that increase on a 1,000 litre fill of home heating oil; whether a further deferral is under consideration in the context of budget 2027; and if he will make a statement on the matter. [67954/26]

Earlier this year, in response to increased fuel prices due to the conflict in the Middle East, Government deferred the planned 1 May carbon tax increase on home heating and other relevant fuels until 14 October. This deferral, in conjunction with the other supports, helps mitigate fuel costs for households and businesses.

It should be noted that carbon tax revenues are recycled to lessen Ireland's dependence on fossil fuels, with successive annual budgets providing additional funds for targeted social protection payments, residential and energy efficiency measures, as well as funding to encourage green farming practices.

As of Budget 2026, the Government has allocated over €4.2 billion in carbon tax revenue for these purposes since 2020. ESRI analysis consistently shows the lower income deciles are better off as a result of the social protection measures funded by carbon tax.

The deferred 1 May Carbon Tax increase legislated to take place on 14 October would add 1.9 cents to a litre of kerosene, or approximately 2.2 cents on a VAT inclusive basis. For a 1,000 litre delivery of home heating oil, this equates to €21.56 on a VAT inclusive basis.

As the Deputy will be aware, it is a long-standing practice of the Minister for Finance not to comment, in advance of the Budget, on the specifics of any tax matters that might be the subject of Budget decisions.