Cost of home heating oil falls but is still nearly double last year's price

The cost of home heating oil has crept up again in recent days but is still significantly lower than it was in early June. 

The average cost for filling 500 litres - about half the size of a standard oil tank - now stands at €658.31, slightly up on recent days. 

The average domestic tank is between 900 and 1300 litres in size. 

Costs reached €772.73 on June 17 last for 500 litres, with the invasion of Ukraine by Russia causing volatility in international oil markets and soaring prices.

Consumer Association chairman Michael Kilcoyne said VAT on home heating should be reduced. 

“Home-heating oil is an essential commodity for people," he told Independent.ie

“The Vat on home-heating oil should be reduced. And it should be removed entirely for people on fixed incomes,” Mr Kilcoyne said.

The Government announced a reduction in VAT rate for gas and electric earlier this year which resulted in a  drop to 9% from May 1 until the end of October, at an estimated cost of €46 million.

However, the Government said it was unable to reduce VAT on home heating oil.

Finance Minister Paschal Donohoe claimed the Government could not cut VAT on home heating oil because of EU laws.

“The reason for that is we have laws across the European Union that govern what are the ways in which you can change VAT and how many different rates of VAT each country can have,” Mr Donohoe told RTE at the time.

“While I accept this feels a little bit removed from challenges in relation to cost of living, overall really in the interests of the small exporting country like Ireland, within the European Union, that we have clear laws in relation to VAT because in turn it helps us sell our goods and services in other countries," Minister Donohoe said. 

Many people in rural Ireland do not have access to gas, and rely on home heating oil to heat their homes.