Amount energy, mortgage payments increased since Iran war

Since the US commenced strikes on Iran in February, consumers are now paying significantly more for energy and mortgage repayments. Prior to the conflict, energy inflation had largely subsided, but since March, Irish consumers have experienced ongoing price hikes for various products and services. A liter of diesel, which cost around €1.70 at the end of February, is now approximately €2.15 per litre, a 45 cent increase.

Petrol, which was around €2 per litre, has risen to roughly €2 per litre. A full tank of diesel, enough for a typical car, is now €18 more expensive, while a full tank of petrol is €12 pricier. Home-heating oil prices have also surged, with a 1,000-litre fill jumping from €970 to €1,771. This amounts to an extra €646 compared to February.

Wholesale gas and electricity prices have also increased, leading to higher costs for consumers. Gas prices are now double what they were a year ago, and electricity prices are 77% higher in August compared to the same month in 2025. As a result, the average household's yearly electricity bill is projected to rise by €180, while gas bills will increase by around €140.

These significant jumps in energy costs have contributed to overall inflation, which is currently projected to exceed 3%, surpassing policymakers' target of 2%. In response, the European Central Bank has increased its main borrowing rate from 2.4% to 2.65% to help curb inflation. This rate hike will result in higher mortgage repayments for borrowers.

Tracker mortgage holders, who account for around 100,000 households in Ireland, will pay approximately €26 more per month in repayments for every €100,000 borrowed. This amounts to over €300 extra annually compared to May. While the exact impact on individual households varies, these price increases have added to the overall cost of living for many.