Supports for businesses in Kilkenny affected by 'significant' kerosene price increases

Government agreement has been reached on a scheme to assist businesses which have been impacted by significant increases in the cost of kerosene heating oil following the invasion of Ukraine by Russia. 

Kerosene prices have risen significantly in the past year. Prices were, on average, €0.50 per litre higher in the 2022 reference period, a 64% increase compared to 2021.

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Minister for Enterprise, Trade and Employment, Simon Coveney TD, today welcomed Government agreement for the development and implementation of the new support.

“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. 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 TD, 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 31 July 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.”

 Minister of State for Trade Promotion, Digital and Company Regulation Dara Calleary said the Scheme will be welcomed by small businesses: “The businesses which are particularly impacted by kerosene increases are those not connected to the natural gas network and who use the fuel for heating purposes. I know that this Scheme will be welcomed in particular by many regionally based small and micro enterprises which aren’t connected to the network.”

Minister of State for Business, Employment and Retail, Neale Richmond also reminded businesses that they can still apply for the TBESS Scheme: “Any assistance that we can give businesses to deal with rising costs is to be welcomed. This Scheme will help to support those businesses who cannot avail of natural gas, and I think it is also a timely reminder for businesses which are eligible for TBESS that there is still time to apply for that scheme and receive help with high energy costs.”

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.