Carbon Tax in Ireland – How Much Is It ?

A carbon tax is a tax on the use of fossil fuels such as oil, petrol, diesel, gas, coal and peat.


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

On 8th October 2019 – Carbon tax on diesel and petrol was increased to €26 per tonne. This resulted in a price rise of about 2c per litre.

The carbon tax on other fuels was increased to €26 a tonne from May 1st  2020

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


The  increase to €26 per tonne resulted 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


History of Carbon Tax

The first time we had a Carbon Tax in Ireland was back in the 2010 Budget . It was first introduced at a rate of  €15 Euro per Tonne. (But not on solid fuels.)
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 first 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 proposed that carbon tax would be increased in 2019 by 50% to €30 a tonne – but this didn’t happen.

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

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