Carbon Tax – How Much Does it Cost You?

A carbon tax is a tax on the use of fossil fuels such as oil, petrol, diesel, gas, coal and peat; anything that produces CO2 when it’s burned.

In Ireland, prior to Budget 2020 the carbon tax was levied at €20 per tonne of CO2.

As announced in Budget 2020 – the Carbon tax on diesel and petrol was increased at midnight on 8th October 2019. Increasing by €6 a tonne – this resulted in a price rise of about 2c per litre.

The carbon tax on other fuels will be increased from May 1st  2020


The  increase to €26 per tonne in 2020 will result in the following price increases in May 2020

  • €0.72 extra on the cost of a 40kg bag of coal;
  • 16 cents extra on a bale of peat briquettes;
  • 2 cents extra on a litre of diesel/ petrol
  • €14 extra on the average annual gas bill
  • €15.50 extra on 900 litres of heating oil

Overall Cost of Carbon Tax on Fuels from May 2020 (Approximate)

  • €2.82 on a 40kg bag of coal;
  • 61 cents on a bale of briquettes;
  • and 7 cents to a litre of diesel/petrol
  • €60 (Inc. VAT) on the average gas bill
  • €65 on 900 litres of heating oil

If you want to cut your energy bills take a look at our Gas Price Comparison and Electricity Price Comparison


The first time we had a Carbon Tax in Ireland was back in the 2010 Budget . It was introduced at a rate of  €15 Euro per Tonne.
The Carbon Tax was then increased to €20 a tonne in the 2012 Budget –  which was a 66% increase. (Don’t forget – VAT is charged on top of the Carbon Tax too).

Carbon Tax was added to solid fuels in May 2013 at a rate of €10 per tonne. This was doubled in May 2014 to fall in line with other fuels.

It was planned to increase the carbon tax in 2019 by 50% to €30 a tonne – but this didn’t happen.

The government say that in 2020 all funds raised by the carbon tax will go towards climate action.

The Climate Change Advisory Council Council recommended that the carbon tax should be increased to €35 euros per tonne of carbon dioxide equivalent in Budget 2020, increasing to at least 80 euros per tonne by 2030.

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