Taoiseach Micheál Martin has signalled that the Government could cut tax on home heating oil in the upcoming Budget.

Speaking at the National Ploughing Championships in Screggan in Co Offaly this afternoon, Mr Martin said the Government was “discussing everything in the round” and were “looking at doing something there” in relation to the cost of home heating oil.

“I think we’re 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 home heating, over the winter period,

“Because we looked at the figures in terms of the impact that was particularly significant there, and yes, we are looking at doing something there.”

Last week, Tánaiste Simon Harris strongly suggested the Government would cut tax on home heating oil in Budget 2027, which will be announced on 6 October.

Figures from the Central Statistics office last week showed home heating oil prices up 44% over the past 12 months, while petrol prices rose by 9% and diesel jumped by 15%.

The Government has two options when it comes to reducing the cost of home heating oil.

It can lower the carbon tax on kerosene, something Sinn Féin is expected to introduce legislation on in the Dáil next week.

Alternatively, it could equalise the VAT rate charged on home heating oil, which is currently 13.5%, with the 9% levied on gas.

Mr Martin also said the upcoming Budget will take into account the impacts of fuel and energy prices, ahead of fuel supports unwinding from 1 November.

This morning, the Irish Road Haulage Association (IRHA) said the Government were “fooling themselves” if they believed fuel prices will have fallen before that date.

However, Mr Martin said the Government knew the situation had “not taken a turn for the better” and that the Budget would provide an opportunity to “take pressure off people”.

He added: “We know the situation has not taken a turn for the better because of what’s happening in the Hormuz Strait, and indeed in terms of other trading routes because of war and conflict and so forth, so we’re very conscious of that.”

Earlier, IRHA President Ger Hyland called for the Government to subsidise biofuels that can be produced within the EU.