The Irish Government has agreed to cut excise duty on petrol and diesel to help households and businesses cope with soaring fuel prices. The proposals, finalised at a leaders' meeting on Monday evening, will be presented to Cabinet on Tuesday for approval.
Under the plan, excise duty on diesel will be reduced by 20 cent and on petrol by 15 cent, effective from midnight on Wednesday until the end of May. A diesel rebate scheme for hauliers and bus operators is also expected, with payments backdated. Additionally, the Fuel Allowance, a weekly payment of 38 euro to help with heating costs from late September to April, will be extended as part of a package of targeted measures.
The Government has faced pressure to intervene as fuel costs have surged due to geopolitical tensions. Irish households have reported home heating oil prices doubling to 800 euro per 500 litres, while petrol and diesel prices remain high.
Taoiseach Micheal Martin welcomed US President Donald Trump's announcement that military strikes against Iranian energy infrastructure had been postponed following talks with Tehran. Martin stated, “I welcome the announcement by the American president that they have postponed any attacks on Iranian oil and gas infrastructure. It’s critical that spreads across the region. It’s critical that the war ends.”
Following Trump's announcement, crude oil prices dropped, with Brent crude falling by up to 10% before settling around 8% lower at just under 104 dollars a barrel. When asked if this would affect the Government's plans, Martin said rising fuel prices have “already had an impact on people” but declined to comment on specifics.
Martin also emphasised the need for “a more sustained engagement with the haulage industry,” describing it as “a key part” of Irish trade. He stated that the plans being announced on Tuesday would need to be “measured and informed” and that long-term proposals are needed to ensure the industry's viability.
