The carbon-tax charge on natural gas is being reduced from 14 October 2026, following the change announced in Budget 2027. In the Dáil’s 6 October debate, the Government set out a reduction from €63.50 to €48.50 per tonne of carbon dioxide emitted. [1]

Bord Gáis Energy’s current customer information says the decrease will apply to gas bills from 14 October at €0.00877 per kilowatt-hour, excluding VAT. [2] For a household, the useful check is the tax charge and its effective date, rather than assuming the entire bill will fall by a headline percentage.

Why an older October notice says something different

Revenue’s 15 April eBrief said carbon-tax increases previously due on 1 May had been postponed until 14 October. [3] That notice describes the position announced in April. It should not be read on its own as a complete account of what happens today.

The later Budget policy changed the direction for natural gas. The National Enterprise Hub’s 7 October Budget summary also identifies a reduction to €48.50 per tonne for natural gas and kerosene. [4] The fuel type and the date of the source both matter when comparing tax headlines.

A tonne of emissions is not a kilowatt-hour of gas

The policy figure is expressed per tonne of carbon dioxide, while the supplier’s billing figure is expressed per kilowatt-hour of gas. They are different units describing the same tax through different measures; neither is the total retail price of the energy.

At the published new rate, the carbon-tax component on an illustrative 1,000 kWh of gas is €8.77 before VAT: 1,000 multiplied by €0.00877. [2] This is arithmetic for that component only. It does not include the energy charge, standing charge, VAT or any other part of an actual account.

Check the period as well as the total

When your next bill arrives, note its start and end dates, the consumption shown and the carbon-tax information. If the bill covers time on both sides of 14 October, ask your supplier to explain how the change has been applied across that period.

For a useful comparison, keep the quantity of gas beside the amount charged. A colder billing period can involve more consumption even where a tax rate is lower. Discounts, tariff changes and other charges can also affect the total.

This change concerns natural gas; it should not be applied automatically to an electricity bill or another fuel’s tax schedule. Keep the source and effective date with any comparison, and ask the supplier about an unclear charge. The measure changes part of the calculation, not a guaranteed saving on every household’s next invoice.

Sources were checked on 14 October 2026.