ANNEX E Main Features of the Carbon Tax
Rate of €15 per tonne of Carbon |
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Categories |
Specific Products |
Implementation Date |
Transport Fuels |
Petrol and Auto-diesel |
10 December 2009 |
Non-transport fuels (oil and gas) |
Kerosene, Marked Gas Oil, Fuel Oil, Liquid Petroleum Gas (LPG) and Natural Gas |
1 May 2010 |
Solid Fuels |
Coal and Commercial Peat |
Subject to a Commencement Order |
- Exemption from the carbon tax will apply only to participants in the EU Emissions Trading Scheme (ETS) in respect of fuels so covered. On that basis, electricity is not subject to the carbon tax.
- Based on studies carried out by the ESRI, the overall direct impact on households will be between €2 and €3 per week.
- Measures are being put in place aimed at improving energy efficiency in low-income households, particularly those dependent on solid fuels.
- The tax is estimated to yield €330m in a full year and €250m in 2010 (CPI impact 0.35% in a full year).
- Accounting and payment of the carbon tax in respect of transport fuels will be required to be made by the 15th day of the following month.
- Further details on the carbon tax will be contained in the Finance Bill and consultation with relevant sectors will commence immediately.
The impact on individual fuels in terms of nominal and percentage price changes is illustrated below:
Fuel Type |
Unit |
Current Price € |
Carbon Tax @ €15 (VAT incl.) |
% Change in Price |
Revenue Yield In a Full Year (VAT incl.) €m |
Petrol |
Litre |
1.19 |
4.2 cents |
3.5% |
75 |
Auto-diesel |
Litre |
1.10 |
4.9 cents |
4.4% |
92 |
Kerosene |
1,000 Litres |
516 |
€43.14 |
8.4% |
47 |
Marked Gas Oil |
1,000 Litres |
539 |
€46.87 |
8.7% |
43 |
LPG |
1,000 Litres |
720 |
€27.97 |
3.9% |
4 |
Fuel Oil |
1,000 Litres |
600 |
€52.15 |
8.7% |
1 |
Natural Gas |
13,750 kwh1 |
800 |
€47.86 |
6.0% |
47 |
Peat Briquettes |
Bale |
3.85 |
39 cents |
10.1% |
6 |
Coal |
40kg |
16.20 |
€1.79 |
11.1% |
15 |
Total Yield |
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€330m |
1. Average annual household consumption. |
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