Pensioners and those living in rural areas will be hammered by the carbon tax as no relief will be given on home heating oil, coal or other solid fuels.
The elderly and citizens who live beyond the city limits use more domestic energy.
The latest cost-of-living package will see VAT on other fuels cut from 13.5% to 9%, which will deliver average savings of €49 on gas and €61 on electricity bills in a year.
READ MORE: Eligibility for incoming fuel tax cut will depend on one key thing
It is also likely that an announcement will be made dropping the Public Service Obligation from the autumn, saving another €58.
A further lump sum payment of €99 under the fuel allowance will represent an extension of the scheme by another three weeks, but it will be cut off in the middle of next month.
And an energy rebate of €200 per household already announced will be seen in households' electricity and gas bills this month and next.
Both Taoiseach Micheal Martin and Tanaiste Leo Varadkar pledged the package of measures will “more than” offset the carbon tax hike coming on May 1.
However, home heating oil, coal and other fire fuels will not see any cut in excise or duties. Mr Varadkar said: “My understanding is that the flexibility that exists will apply to electricity and gas, but not to home heating oil, so that would be the difficulty.”
At the Shared Island conference at Dublin Castle yesterday, Mr Martin added: “I did say in the Dail that in the context of the increase in the carbon tax on May 1, that we would offset or neutralise the impact of that increase on the public.
“The measures that Government will discuss tomorrow in relation to VAT reduction on gas and electricity and indeed the fuel allowance are designed to do just that.
“In fact they will more than make up if not be far in excess of the amounts that would have been raised up in terms of the carbon tax or the impacts of the carbon tax so we’re fulfilling that commitment.”
The next carbon tax hike will see the cost of filling a home heating tank go up by €20 per fill, and add 89c to a bag of coal.
Prices are predicted to continue to increase because of rising inflation and the war in Ukraine.
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