Government promises to reduce cost of home heating oil in Budget 2027Taoiseach Micheál says he want to give ‘alleviation to people in their homes in particular over the winter period’ Tue, 15 Sep, 2026 – 19:29Louise Burne and Paul Hosford
The Government has vowed to help hard-pressed households ahead of the winter with the Taoiseach, Tánaiste, and public expenditure minister all vowing to cut the price of home heating oil in Budget 2027.
At the National Ploughing Championships in Screggan, Co Offaly, Taoiseach Michéal Martin said the Government wants to “give alleviation to people in their homes” as the cold weather approaches.
However, Tánaiste and finance minister Simon Harris warned there is “no point in anyone telling porkies” and some of the spiralling costs the public faces are outside the Government’s control.
The cost of a fill of home heating oil has spiralled in recent months since the outbreak of the war in Iran and the closure of the Strait of Hormuz through which around 25% of the world’s oil supply transits.
The cost of a 500-litre fill of oil stood at an average of €808 on Tuesday. This was up from €498.56 at the end of February.
Mr Martin told reporters the Government will take action to help people with the rising cost of home heating oil as part of October 6’s budget.
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He said Ministers are currently assessing “everything in the round”.
“I think we’ve more or less focused in on the idea of decoupling that kerosene issue and making sure that we give alleviation to people in their homes in particular over the winter period, because we looked at the figures in terms of the impact that was particularly significant there,” he said.
Decoupling could involve changes to VAT or the removal of the carbon tax element on kerosene, but sources told the Irish Examiner that work to figure out what to do is ongoing.
Mr Harris said people at the Ploughing had expressed concerns about the price of home heating oil, but he “had to be truthful” as it is largely outside the Government’s control.
“I do think there’s an onus on Government between now and budget day for us to really dig deep and consider the various policy levers at our disposal to try and assist people with energy,” the Tánaiste said.
Mr Harris said that older people, low-income families, and rural people are “disproportionately” impacted due to their reliance on home heating oil.
He also questioned if there were measures that could be taken “either on the tax or expenditure side”, but vowed the Budget will assist with fuel and energy costs.
Public expenditure minister Jack Chambers, meanwhile, said that the Government is “cognisant” of the spike in home heating prices as “we enter into a very difficult winter” and is “specifically seeking” to examine kerosene.
“We want to make a difference when it comes to the cost of living, and energy prices are a specific issue for so many families,” he said.
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