There is no “real secret” in Leinster House about the Government’s plan to cut energy bills in next month’s budget. 

With energy bills still eyewateringly high due to continued chaos in the Middle East, the Government has been examining various ways to cut the cost of living. 

While Minister Dara Calleary has warned that global prices are “out of our control”, the Cabinet has instead discussed cutting taxes on fossil fuels. 

On The Claire Byrne Show, Paul Hosford of the Irish Examiner said this is something that the Government feels “can be done”. 

“Both Micheál Martin and Simon Harris made points to say it in their press conferences that decoupling the carbon tax from home heating oil is something that would be done,” he explained. 

“I don't think there's any real secret around Government [about that].

“[The] carbon tax on home heating oil is something that is being looked at as a potential kind of cornerstone of this year's budget.”

However, while this is likely to reduce prices in the short-term, few can predict what will happen in the Middle East. 

A lasting peace agreement would likely moderate prices, while prolonged conflict could increase them further. 

“Simon Harris was at the Oireachtas Budgetary Oversight Committee yesterday and he was talking about this and he said the Government can't fully insulate people from external energy shocks,” Mr Hosford recounted. 

“The only real economic intervention would be a de-escalation in the Middle East.

“It's very obvious that that doesn't seem to be coming.” 

Eventually, however, the Government will have to make a choice - will these measures become a permanent part of the Irish budget? Or will they slowly phased out? 

“If the measures are pushed back into the spring, as we think that they might, that's the guts of a year that these supports have been in place,” Mr Hosford added. 

“And the question is, how long more can you do it? How long more can you justify not taking that in? Or do you just make it a permanent part of the landscape?

“Because even with these Government interventions - huge amounts of money being being spent - the prices at the pumps are still above €2 and €2 was more or less the Rubicon four years ago when when supports were first brought in.”

Main image: Bank notes. Picture by: Alamy.com.