Carbon tax: Tánaiste says no decision yet on October increase

Why the carbon tax timing matters

The rise, which would bring the rate to €71 per tonne, had originally been due to kick in on 1 May 2026 before being deferred in April following the fuel protests.

Carbon tax is levied on coal, peat, home heating oil, natural gas supplies to consumers and, of course, petrol and diesel.

This is why the October date matters to almost every household in the country.

Harris pointed to the recent tax strategy papers, which set out a range of policy options for Government, including differentiating between fuel types rather than applying one increase across the board.

The Tánaiste said times have changed since the measures were first introduced, and he was clear that the principle is not in question even if the timing is.

It lands against a cost-of-living backdrop in which electricity arrears in Ireland have hit their highest level on record.

"Let me be crystal clear: the Programme for Government supports carbon tax, I support carbon tax," said Tánaiste Simon Harris.

"The trajectory was set before there was a war in Ukraine, before there was the situation in the Middle East.

"So there are policy options for government to consider," he added.

For now, September and October will remain without change on excise, The Journal reported. Unless Government decides otherwise before then, the deferred increase remains pencilled in for 14 October.