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Changes to Mineral Oil, Natural Gas and Solid Fuel Carbon Tax rates
From 14 October 2026 the Mineral Oil Tax on non‑propellant kerosene and the Natural Gas Carbon Tax are reduced, and a planned increase to Mineral Oil and Solid Fuel Carbon Tax is postponed to 1 May 2027.
By Irish Fintax
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Revenue has updated the Excise Duty Rates on Energy Products and Electricity. The changes affect three carbon‑related taxes that apply to fuel and gas used in Ireland.
These adjustments are set out in the Tax and Duty Manual and take effect on the dates shown below.
Rate reductions from 14 October 2026
From 14 October 2026 the rate of Mineral Oil Tax on non‑propellant kerosene is reduced. At the same time the rate of Natural Gas Carbon Tax is also reduced. The eBrief does not give the new rates, only that the reductions apply from that date.
Postponement of carbon tax increases
A scheduled increase to the carbon tax rates that would have applied to Mineral Oil Tax and Solid Fuel Carbon Tax on 14 October 2026 has been delayed. The new start date for the increase is 1 May 2027.
What the changes affect
- Businesses that use non‑propellant kerosene will see a lower Mineral Oil Tax from 14 October 2026.
- Consumers and businesses using natural gas will pay a lower Carbon Tax from the same date.
- The anticipated rise in carbon tax on mineral oil and solid fuels will not take effect until 1 May 2027.
Key dates
- 14 October 2026: reductions to Mineral Oil Tax on non‑propellant kerosene and Natural Gas Carbon Tax take effect
- 1 May 2027: postponed carbon tax increase on Mineral Oil Tax and Solid Fuel Carbon Tax becomes effective
Sources
- Mineral Oil Tax, Natural Gas Carbon Tax and Solid Fuel Carbon Tax rates - Changes to carbon tax trajectory (Revenue, 21 October 2026)
Information provided courtesy of the Revenue Commissioners under a Creative Commons Attribution 4.0 International (CC BY 4.0) licence.
Drafted with the help of AI from the official sources above, then checked and edited by a person before publishing.
General information only, not financial, tax or legal advice. Rates and rules change and your own situation matters, so check with Revenue or a qualified, regulated adviser before acting on a big decision.
Reviewed by Arif Bhuiyan, FCA, ACA, MBA, MSc, and a group of Ireland-based finance professionals who want to make financial literacy easier for people in Ireland.
