The average cost of home heating oil surged by 67.5% between February and March this year, according to newly released data from the Central Statistics Office.
The average cost of diesel climbed by 18.1%, while petrol prices rose by 7.7% during the same month, reports RTE.
The CSO stated that inflation rose by 3.6% over the past 12 months, matching an estimate issued the previous week and marking the highest level recorded in more than two years.
However, this represented a notable increase compared to the 2.7% inflation rate recorded in the 12 months leading up to February, reports RTE.
Transport expenses rose by 5.2% over the month, while Housing, Water, Electricity, Gas and Other Fuels saw an increase of 3.9%, according to the latest figures.
The CSO noted that the surge in home heating oil prices is the highest recorded since 1996, while increases in petrol and diesel prices are the steepest since the summer of 2022, following the outbreak of the War in Ukraine, reports RTE.
The CSO reported that the national average price of diesel in March reached €2.05, marking an increase of 31 cent per litre compared to February. Meanwhile, petrol averaged €1.88 last month, rising by 13 cent over the same period.
These prices were gathered between 10 and 18 March by the CSO before the Government implemented a reduction in fuel excise duty and before prices reached their peak. The cost of home heating oil was recorded on 10 March, reports RTE.
“Home heating oil contributed 0.52 percentage points towards the overall inflation rate in March 2026,” the CSO said,
“Diesel and petrol contributed 0.27 and 0.11 percentage points towards the overall inflation rate in March, respectively,” it added, reports RTE.
Lisa Ryan from University College Dublin explained that heating oil is largely derived from kerosene, which is traded globally alongside aviation fuel.
She said that Ireland sources around 40% of its kerosene from the Middle East, which explains why home heating oil prices have risen “much more sharply” than motor fuels, which are derived from Brent crude, most of which Ireland imports from the North Sea, reports RTE.
She said they are “two different markets,” and that households in Ireland, along with those in the United Kingdom, are “very reliant” on heating oil compared with other nations.
She highlighted that around 700,000 homes in Ireland depend on heating oil as their primary heating source, adding that while the timing is favourable as demand for heating is now easing, “we need to be moving away from it,” reports RTE.
She added that the recent spike in oil prices could “last a while” and that the summer period presents an opportunity to “target” households using heating oil and “try and switch out their heating so they’re not reliant on heating oil next winter if prices remain high,” reports RTE.
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