Taoiseach Micheál Martin has indicated that the Government is considering reducing the tax on home heating oil in the upcoming Budget, as households face sharply rising energy costs.
Speaking at the National Ploughing Championships in Screggan, Co Offaly, Mr Martin said ministers were examining a range of measures and were considering action to ease the cost of home heating oil over the winter.
The Government has two main options. One would involve reducing the carbon tax applied to kerosene, while another would be to bring the VAT rate on home heating oil down from its current 13.5% to 9%, in line with the rate charged on gas.
Mr Martin said the Government was particularly focused on addressing the cost of kerosene and providing relief to households during the colder months.
Recent figures from the Central Statistics Office showed that home heating oil prices had increased by 44% in the previous 12 months. Over the same period, petrol prices rose by 9%, while diesel increased by 15%.
The Taoiseach also said the Budget would consider the impact of higher fuel and energy prices as existing supports are due to be withdrawn from 1 November.
The Irish Road Haulage Association has warned that the Government would be “fooling themselves” if it expected fuel prices to fall before then.
Mr Martin acknowledged that the international situation had not improved, pointing to disruption around the Strait of Hormuz, as well as the impact of wars, conflicts and changing trade routes. He said the Budget would provide an opportunity to reduce some of the financial pressure facing households.
Tánaiste and Finance Minister Simon Harris also confirmed that lowering the cost of home heating oil was being considered. He said some groups, particularly older people, low-income families and those living in rural Ireland, were being disproportionately affected by high heating oil prices.
Mr Harris added that the Government would also need to consider petrol and diesel costs and provide households with greater certainty around fuel taxes in what he described as an increasingly uncertain global environment.
Minister for Public Expenditure Jack Chambers said measures targeting kerosene and home heating oil were being examined as part of the overall Budget tax package. He said the Government recognised the significant increase in prices and wanted to develop a mechanism that would provide households with some protection from the rise.
Meanwhile, Mr Martin has criticised comments made by Ryanair chief executive Michael O’Leary in which he compared rival airlines to “rapists”.
Mr Martin said he was disappointed by the remarks and urged men to be more careful about the language they use when discussing rape.
He described rape as an extremely serious crime that can have a lifelong impact on victims. While he said he did not believe Mr O’Leary intended to cause offence, he argued that the comparison created an inappropriate impression about the seriousness of rape.
Mr Martin encouraged Mr O’Leary to reflect on his comments and listen to the concerns raised by women and victims’ groups. However, when asked whether the Ryanair boss should apologise, the Taoiseach said he would leave that decision to Mr O’Leary.
