Eoghan Dalton Reports from Killarney

TRANSPORT AND CLIMATE minister Darragh O’Brien has said a second deferral of the carbon tax increase is “on the table” in upcoming budget talks, in some of the strongest remarks the minister has made to date on the future of the climate levy.

Speaking as he arrived in Killarney, Co Kerry for the Irish Road Haulage Association (IRHA) annual conference, O’Brien said the carbon tax carries a “financial heft” that helps fund retrofit schemes, but he warned the government has to “look at all levers” to keep costs low for the haulage industry and other sectors of the economy.

The deferral of the planned carbon tax measures was announced in April, following the fuel protests.

In response to a question from The Journal, O’Brien cited remarks made by Finance Minister Jack Chambers in Dublin earlier on Saturday, who had said nothing was being ruled in or out of the budget.

O’Brien said:

“You would have heard my colleague Jack Chambers say earlier on today, that everything is on the table.

“Carbon tax is a very important part of ensuring that we can have the funds to retrofit businesses and particuarly retrofit homes to bring about permanent energy savings, to reduce emissions and to conserve energy use. But we will look at that.”

O’Brien added that, as he also holds the brief for environment minister, he has “got to ensure we retain the funds that we have to help” households and businesses for retrofits.

Approximately €640 million has been pumped into retrofits for this year alone, the Fianna Fáil minister said.

“We want to make sure we have the financial heft that’s there. That said, though, we recognise increased costs at this time have elevated pricing, due to matters outside of our control, that we have to look at all levers that we have to keep that to the minimum,” O’Brien added.

“So that is something we’re discussing in advance of the budget in early October.”

A number of haulage representatives had said they wanted to see carbon tax postponed for a second time in the upcoming budget.

O’Brien’s visit to round off the annual haulage conference comes just months after the government faced intense protests from hauliers, agricultural contractors and farmers, leading to a shutdown of many of Ireland’s motorways and fuel depots.

Ministers Seán Canney and Darragh O'Brien meeting road haulage president Ger Hyland outside the Gleneagle Hotel in Killarney on Saturday evening. The Journal The Journal

Deferred increases

Last month, Tánaiste Simon Harris said no decision had been made on whether the tax will be derred for a scond time in the budget.

The government announced that a planned increase due to kick in on 1 May 2026 of €71 per tonne would be postponed until 14 October 2026.

Carbon tax is levied on fuels: coal, peat, home heating oil, natural gas supplies to consumers and, of course, petrol and diesel.

Minister wants €10 million diesel rebate extended

In response to this year’s fuel protests, various subsidies were introduced, including a €10 million diesel rebate scheme for hauliers and coach operators.

O’Brien said that he and his fellow minister in the Department of Transport, Seán Canney, also want to extend a €10 million diesel rebate scheme for hauliers in the upcoming budget.

It allows these businesses to reclaim 12 cents per litre, rather than the previous 3 cents rate.

The rebate, which was introduced in April following the nationwide fuel protests, is due to end in December.

The IRHA want to retain the diesel rebate scheme indefinitely, citing it as a major help to trucking firms as the price of diesel rose sharply due to the US war on Iran.

O’Brien said these measures are how he wants “soften the price increases” facing the haulage sector.

“We did argue for this recently, to keep the diesel rebate scheme at the 12 cent level. That is being discussed and I would like to see it continue,” O’Brien said.