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News2 min read

Budget 2027: Government Signals Heating Oil Tax Cut as Bills Bite

Senior figures in government are pointing toward excise relief on home heating oil in the upcoming budget, with households already feeling the strain of bills close to €1,400 a fill.

By MyOil Newsroom · 14 September 2026

Summary

Taoiseach Simon Harris and the Tánaiste have both indicated that a cut to heating oil excise duty is on the table for Budget 2027, according to reporting from The Irish Sun and Big News Network. The move comes as Irish households face fill costs that The Irish Sun reports can reach around €1,400 depending on location and timing. For anyone heating their home with oil, a reduction in excise could translate into a meaningful drop in the cost of each fill, though the exact scale of any relief has not yet been confirmed.

Government Turns Its Attention to Heating Oil Costs

With Budget 2027 approaching, senior government figures appear to be converging on the idea that heating oil excise duty needs to come down. The Irish Sun reports that Taoiseach Simon Harris has confirmed plans that include a heating oil price reduction as part of a broader package of cost-of-living measures. Separately, Big News Network reports that the Tánaiste has also signalled that a cut to heating oil tax is in the works for the upcoming budget.

The timing matters. Calls for excise relief have been building for months. Donegal Live reported earlier in September that local voices were pressing hard for a reduction, with the argument that the current level of excise is placing serious pressure on households, particularly in rural areas where oil is often the only realistic heating option.

What Households Are Actually Paying

The scale of the problem is visible in the numbers already being reported. The Irish Sun highlighted this month that heating oil prices have reached levels where a full tank can cost around €1,400 in some parts of the country, representing a gap of as much as €541 between the cheapest and most expensive counties to buy. That gap underlines how much location and timing can affect what you actually pay.

Echo Live also carried a personal account of the frustration many oil-heated households share, pointing to a combination of global factors and domestic policy decisions as contributors to stubbornly high bills.

What It Could Mean for Your Home

If excise is cut as signalled, the benefit would show up directly in the pump price of kerosene, reducing the cost of each fill. However, the exact figure has not yet been confirmed by government, so it is worth treating current reports as an indication of direction rather than a done deal. Budget day will be the moment when any firm numbers are put on the table.

In the meantime, the difference between counties and between suppliers remains significant. Comparing prices before you order is one of the most straightforward ways to reduce what you pay right now, whatever direction policy takes. You can also set a price-drop alert so you are notified when prices fall in your area, or check how long your current oil will last to help you plan your next order without rushing into a purchase at the wrong moment.

Sources

  • Big News Network.com: Ireland's Tanaiste signals heating oil tax cut in budget ↗
  • The Irish Sun: Four years of tax cuts, lower energy bills, cheap childcare & heating oil price slash… Harris confirms Budget 2027 plans ↗
  • The Irish Sun: The 8 cheapest counties to buy your heating oil as prices hit €1.4k in €541 blow ↗
  • Donegal Live: ‘Home heating oil excise must be cut to take pressure off people’ ↗

We write our own take and link the original reporting. Figures are as reported by the sources above.

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