LAST UPDATE | 34 mins ago

SINN FÉIN HAS denied claims that a motion to scrap carbon tax on home heating oil is just “political theatre”.

The party is tabling a motion today to remove the tax amid the ongoing fuel crisis.

However, Fine Gael TD John Clendennen said bringing the idea forward just “a couple of weeks out” from the announcement of next year’s budget “is political theatre”.

Speaking on RTÉ’s Morning Ireland Clendennen said “if Sinn Féin were serious about this today, we’d have an alternative budget on the table, and we’d be able to look at everything in the round”. 

He said the government must reduce “financial disappointment”, while supporting “working people”, which he says will be achieved through the mooted income tax package.

Speaking outside Leinster House today, Sinn Féin’s Pearse Doherty denied the “theatrics” and insisted that the party has repeatedly produced such legislation.

“This is the eighth occasion that we have brought this forward, and the reason that we’re continuing to bring it forward is because I’ve been in too many homes right across the state over the last number of months, talking to people about the cost-of-living pressures”.

“If it wasn’t for Sinn Féin consistently and continually raising this issue, then the government would have ignored, as they have done for the last number of months, the plight of people who are trying to keep their homes warm” Doherty added.

The average cost has risen by nearly 80% in the past year, following the US and Israel’s war on Iran, and now one in seven households are in arrears.
CheapestOil.ie’s price tracker shows the average price nationwide has soared from €463 per 500 litres this time last year, to €828 today – a 79% increase.

Price comparison websites outline their prices based on what is charged by local suppliers around Ireland.

More than a third of Irish households depend on oil for heating.

Taoiseach Micheál Martin said last week that the government is “looking at doing something” in relation to the cost of home heating oil. 

“As I said, we’re discussing everything in the round. 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 home heating, over the winter period, because we’ve looked at the figures, in terms of the impact is particularly significant there,” he said.

Asked on air today whether the carbon tax will be scrapped in the budget, which will be revealed on 6 October, Clendennen again said the government “has to look at everything in the round”.

“Certainly carbon tax is something we need to look at and review, but we need to look at things from a holistic perspective,” said Clendennen.

“If you wanted to see a reduction then you wouldn’t be voting to keep these taxes,” Sinn Féin’s Pearse Doherty told him in response.

Doherty said home heating oil is the only fuel where tax could legally be scrapped. Under EU law, other fuels such as petrol and diesel must be taxed.

Currently, money raised through carbon tax is ring-fenced and goes towards energy upgrades, the home retrofitting scheme and targeted social welfare supports.

Doherty claims that in his party’s alternative budget, Sinn Féin will show that these projects would still be funded, but not by carbon tax.

Another option to cut prices, which has been suggested by industry group Fuels for Ireland, is to reduce the VAT rate on home heating oil (currently 13.5%) and bring it in line with the 9% rate on gas. 

However, it is unclear what approach the government will take.

Government TDs have indicated they’ll vote against it, but it’s possible that such a measure will be introduced later this year. 

Other opposition parties such as The Green Party and Labour advocated for targeted energy credits as a preferred approach.