The tax, which is usually imposed from midnight on the night of the Budget, is set to add between 2c and 3c to a litre of both diesel and petrol.
It comes as petrol prices have remained unchanged this month and diesel dropped by 1c, according to the September AA Ireland fuel price survey.
Carbon tax is set to add between 2c and 3c to a litre of diesel and petrol. Photo: Getty
Today’s News in 90 Seconds – September 23rd
Planned hikes in the cost of electricity from next month for many households mean people with an electric vehicle face a turbulent winter, AA Ireland said.
The survey found that unleaded petrol was the same price this month as the previous month at €1.70 per litre. Diesel was €1.67 per litre, down 1c from €1.68 last month.
EV home charging costs also remain steady. But Bord Gáis Energy, Energia and Pinergy customers are set to see price increases from next month.
At a time when families face back-to-school costs, that predictability is a real help
An AA Ireland spokesperson said motorists will welcome some stability this month. “At a time when families face back-to-school costs, that predictability is a real help,” they said.
Motorists are benefiting from low prices for crude oil. They are also gaining from the fact that crude imports are priced in dollars and the dollar has weakened against the euro.
However, half of the cost of a litre of petrol or diesel is accounted for by taxes and duties, limiting any impact of lower crude prices and a weaker dollar.
Fuel prices remain relatively stable but, motorists and home-heating oil users in Ireland are bracing themselves for the planned increase in carbon tax
Kevin McPartlan of Fuels for Ireland, which represents oil importers, distributors and retailers, said: “Fuel prices remain relatively stable but, motorists and home-heating oil users in Ireland are bracing themselves for the planned increase in carbon tax and the higher renewable transport fuel obligation, which are set to increase prices by up to 5c per litre in the next three months,” he said.
Mr McPartlan said consumers will be paying careful attention to next month’s Budget to see whether Finance Minister Paschal Donohoe will do anything to review the strategy around taxation and other policies which impact on fuel prices.
Fuels for Ireland has been calling for a review of the taxes and levies on motor fuels and home-heating oil for months now.
Meanwhile, the International Energy Agency said recently the world is facing a record overhang of crude oil. Crude prices rose yesterday to €67.15 a barrel.