Government to develop scheme for businesses struggling with oil price increases

Kenneth Fox

The Government has announced they will develop a new scheme to help businesses impacted by increases to the price of kerosene heating oil.

Minister for Enterprise, Trade and Employment, Simon Coveney said the price of kerosene increased following Russia’s invasion of Ukraine.

“As we know, businesses have experienced unprecedented increases in energy costs over the past year.

"This Scheme will now ensure that businesses, who use kerosene for heating, can claim for the increased costs of this fuel," Coveney said.

The Scheme will complement supports for increases in gas and electricity costs that are already available under the Temporary Business Energy Support Scheme (TBESS).

Welcoming the decision, Minister for Finance, Michael McGrath said:“I welcome the Government decision to develop a scheme to support businesses dependent on kerosene as an energy source.

"In addition to this new scheme, I informed Government today of my intention to extend the Temporary Business Energy Support Scheme, which supports businesses that use mains gas and electricity, to July 31st, 2023.

"This extension will help businesses, over the coming months, that have not yet seen the benefit of decreasing wholesale energy prices, and I strongly encourage businesses who have not already registered and made a claim for TBESS to do so.”

The Department of Enterprise, Trade and Employment will consult with other Government Departments in the design of the Kerosene Scheme.

The Scheme will utilise unspent Temporary Business Energy Support Scheme (TBESS) funds subject to sanction from the Minister for Public Expenditure, NDP Delivery and Reform. The Scheme will also require State Aid approval from the EU Commission.

It is intended that the Scheme will be launched in Q3 this year.