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Heating Oil Trade Association Welcomes Irish Govt Decision not to increase Carbon Tax on fuel

October 9, 2018

The trade association for the oil and fuel sector in Ireland and the UK, The Federation of Petroleum Suppliers (FPS) has welcomed the decision by Irish Finance Minister Paschal Donohoe to reduce financial pressure on the estimated 400,000 households in Ireland who are suffering from fuel poverty, by not increasing the carbon tax in the Budget.

The FPS wrote to the Finance Minister on behalf of its members, prior to the budget expressing its concern over the potential consequences of a carbon tax rise. The concern was stated alongside a keenness to work with the Department of Finance & Public Expenditure and Reform to establish a way to reduce the country’s carbon footprint and overcome any potential issues following such a tax rise.

FPS Ireland Representative Nick Hayes comments: “Ireland has over 711,000 households on heating oil and our members distribute heating oil to many vulnerable people and people who are already in fuel poverty so any additional cost on fuel would have made the situation worse for them, so we are pleased that this increase has been averted. Consumers are faced with making savings wherever they can at the moment so any help with fuel bills is welcomed.

“We are also fully aware of the need for Ireland to reduce its carbon footprint and want to work with Paschal Donohoe to help find a solution for the environmental concerns.  We strongly believe though that a pathway can be created where carbon emissions can be reduced on a staged basis towards a final decarbonisation date far enough in the future to allow our members to work with their suppliers and invest in solutions. In the short-term, consumers should be encouraged to replace old boilers, improve insulation, and fit smart metering controls which will all improve current emissions. “Hybrid heating systems are also a possible solution to reducing emissions. Whilst these short-term carbon reduction solutions are being implemented, investments will continue to be made in new technologies.

“At the moment we are working closely with the European Confederation of Fuel Distributors (ECFD), boiler manufacturers and other trade associations exploring alternative liquid fuel solutions for off-grid heating, including potential biofuel blends.”

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