Filling the oil tank, topping up the car and paying the gas bill have all hurt more this year. The conflict in the Middle East has pushed energy prices up again, the second big shock in five years, and households and businesses have felt it.
Budget 2027 can't bring prices back down on its own, but it does take some of the sting out. There's help with heating your home this winter, more time on lower fuel prices, and a few changes worth knowing about if you're buying a car.
Here at Gilheany & co , we've pulled the energy and motoring measures together in one place, so you can see what they mean for you.
Heating your home: carbon tax cut and frozen
This is the big one for winter. The carbon tax on home heating oil and natural gas is being cut, and it won't go up again for the rest of this Government's term.
Carbon tax on both was due to rise twice by May 2027, from €63.50 to €78.50 per tonne of CO2. Instead, it's coming down to €48.50 and staying there, which over time means less than half the rate originally planned.
The Minister also promised there'll be no increase in any form of tax on fuel, at the pump or in your home, this winter. For anyone heating with oil or gas, that brings some welcome certainty heading into the colder months.
At the pump: lower fuel prices for longer
The temporary cuts to excise duty on petrol and diesel, which were due to end in November, are being extended. They'll stay fully in place until 28 February 2027.
After that, excise will go back up gradually in four steps rather than all at once, and won't be fully restored until 30 June 2027. That should soften the blow at the pump and give households and businesses time to plan.
There's help for businesses on the road too. The reduced NORA levy and the enhanced Diesel Rebate Scheme for hauliers and bus operators have both been extended to the end of December 2026.
Your next car: going electric still pays
If you're thinking of changing your car, the gap between electric and petrol or diesel is getting wider. More than one in four new private cars registered this year has been electric, and the Government wants to keep that going.
- EV relief extended. The Vehicle Registration Tax relief on electric cars has been extended by two years, to 31 December 2028.
- VRT up on higher-emission cars. VRT is going up by 1% on cars in emission bands 3 to 20, which covers most new petrol and diesel cars. On a car with a €30,000 market value, that's roughly €300 more.
- Commuter schemes under review. The Cycle to Work scheme is being reviewed in 2027 to get more people using it, and the TaxSaver commuter ticket scheme is also getting a full review to reflect how working patterns have changed.
If you're on the fence about going electric, the next couple of years look like a good window, and if you buy through your business, it's worth talking to us about the tax treatment before you sign.
Solar panels: keep more of what you sell back
If you've got solar panels and sell your spare electricity back to the grid, you can now earn up to €600 a year from it tax-free, up from €400. It's a small change, but a nice bonus for households who've already made the switch, and one more reason to consider it if you haven't.
Need a hand?
Energy costs affect every household and business differently, whether it's the cost of heating, running a fleet of vans or deciding on your next car. If you'd like to talk through what these changes mean for you, the team at Gilheany & co is always happy to help.
