Some families nationwide will be excluded from the temporary reduction in energy VAT rates depending on what they use to heat their homes.
According to reports, the reduction will not be offered on home heating oil or solid fuels.
CSO figures show the midlands counties to be the highest users of solid fuel in 2021, including the use of wood logs, coal, peat and wood pellets.
READ MORE: Fuel Allowance recipients could be in for cash boost as government considers vital update
31% of households in the midlands used solid fuel as their main heating fuel, while figures were lowest in Dublin with 2% of households reporting using solid fuel as their primary fuel.
Pensioners and people living in the country will therefore be worst hit by the carbon tax and so the government is being called upon to make changes to their relief scheme.
It is currently considering a number of additional measures to help people with the rising cost of living as many struggle to meet the growing costs.
The changes would be introduced on a temporary basis and would require an amendment to the Finance Bill to reduce the VAT rate on energy from 13.5% to 9%.
If approved, it would mean a reduction of around €49 per annum on the average gas bill and €61 annually off electricity prices from May 1, according to RTE News.
It is expected that the measure will be discussed at a Cabinet meeting today before being implemented - with an update likely to come this evening.
Fuel Allowance recipients could also be given a slight boost as officials work to introduce three weeks of additional payments.
This would be paid to all 370,000 recipients of the fuel allowance in the form of one lump sum of €99.
According to Irish Independent, it is also likely that an announcement will be made confirming that the Public Service Obligation levy will be dropped from the autumn, saving people a further €58.
The measures under consideration by the Government come after the €200 energy discount, the decrease in excise on petrol and diesel, and the extension of the fuel allowance failed to ease the minds of struggling households.
The next carbon tax increase comes into effect in two weeks’ time on May 1, 2022, and will see the cost of filling a 900L home heating tank go up by around €20, and add 89c to a bag of coal.
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