The cost of heating one’s home has increased significantly over the past ten years, particularly for those on lower incomes.
In 2012, a 40kg bag of coal in Ireland cost an average of €13, at a time when the minimum wage was €8.65 per hour. This amount of coal could last roughly a week in winter time.
What this meant was, if you were on minimum wage in 2012, in order to afford a week’s worth of coal, you would have to work for around 1 hour and 30 minutes.
Fast forward to 2022, and that same 40kg bag of coal costs an average of €33 – an increase of €20 over a ten year period.
While the minimum wage has increased during the same period to €10.50 an hour, the rising cost of energy has outpaced the hike in wages. The end result of this is that a minimum wage worker today has to work 3 hours to afford a 40kg bag of coal in 2022. In short, a low-income worker today has to work for twice as long to afford the same amount of coal as they would have had ten years ago.
The price of briquettes have also increased proportionally for poorer people.
In 2012, 5 bales of briquettes cost around €20, and would have taken a minimum wage worker around 2 hours and 20 minutes to earn. In 2022, that same 5 bails now costs €32.50, and would take that worker 3 hours of work to afford the same quantity. The same amount of briquettes today costs €12.50 more than it did a decade ago.
The trend holds true for home heating oil as well. 1000 litres of home heating oil – or a year’s supply – cost around €880 in 2012, and would take a low wage worker around 101 hours to earn.
Now, in 2022, that same amount of heating oil costs around €1170 – around €290 more – and would take 111 hours for low earners to acquire.
Last week it was reported that hundreds of thousands of Irish households have been pushed into fuel poverty due to continued hikes in electricity and fuel prices – around 40% of the country’s total population.
Up to 40% of households now in energy poverty https://t.co/7v4esE6omz
— Irish Examiner (@irishexaminer) November 30, 2022
Despite the rising costs of energy, the government still committed Ireland to an annual carbon tax hike earlier in the year, even as prices surged.
A spokeswoman for Eamon Ryan said the carbon tax increases due at the end of April on home heating would amount to rises of no more than €1.40 a month on a gas bill and €1.50 a month on home heating oil. https://t.co/zArNC9zgoy
— The Irish Times (@IrishTimes) April 5, 2022
Between the rising cost of living due to the ongoing energy crisis and also spiralling inflation, Public Expenditure Minister Michael McGrath said last month that Ireland cannot rule out a recession next year.
McGrath: Recession in Ireland next year cannot be ruled out https://t.co/xeoorrbu0h
— Irish Examiner (@irishexaminer) November 15, 2022
Last year Gript reported that as motor fuel costs were hitting record highs, over half of said costs were coming in the form of various government taxes and levies, such as carbon tax.
Irish motorists are facing prices of over €100 to fill up their cars as petrol prices surge to new highs, with the government’s carbon tax playing a major factor.#gripthttps://t.co/WLC2zHjNLU
— gript (@griptmedia) October 26, 2021