Carbon tax

Introduction

There is a carbon tax on fuel supplied in Ireland. The tax is based on the amount of carbon dioxide that the fuel emits when it is used.

The Solid Fuel Carbon Tax applies to coal and peat.

The Natural Gas Carbon Tax applies to natural gas supplied to consumers.

Natural gas supplied as fuel in a motor vehicle is called 'vehicle gas' and is instead liable to Mineral Oil Tax, part of which is a carbon charge.

The Mineral Oil Tax Carbon Charge also applies to petrol, auto-diesel and marked gas oil. You can see how much of the Mineral Oil Tax on fuel is carbon tax.

Budget 2025: Increase in Carbon Tax for fuel

From 9 October, the rate of carbon tax for petrol and diesel will increase from €56 to €63.50 per tonne. The increase will apply to all other fuels from 1 May 2025.

Rates

The current rate of carbon tax is €56 per tonne of carbon dioxide emitted.

Carbon tax is paid by the supplier of the fuel.

Further information

You can find detailed information about the Solid Fuel Carbon Tax on the Revenue website, including the amount of tax per tonne of solid fuel.

You can also read more about Natural Gas Carbon Tax and Mineral Oil Tax on vehicle gas.

Page edited: 2 October 2024