Ireland will cut excise duty on fuel by the end of May as part of a €250 million package to protect against the impact of the Middle East war on the country’s economy.
The soaring price of crude oil has caused prices at some petrol stations in Ireland to rise above €2 a litre for unleaded petrol, a level the country has not seen since 2022 at the start of the war in Ukraine.
A 15-cent-per-litre cut in excise duty on petrol and a 20-cent cut on diesel (diesel) will come into effect from midnight tonight, the government said.
Prime Minister Michal Martin told a press conference today that the measures are “targeted and temporary” and will be reviewed depending on market developments.
The government will also suspend the levy on the National Petroleum Reserve Agency (NORA) for two months, resulting in a reduction in the price of motor fuel and heating oil by an additional two cents a litre, but this measure will require the approval of additional legislation.
The department is responsible for maintaining Ireland’s strategic oil supply and is funded through the levy.
Heating allowances for welfare recipients will be extended for four weeks and there will be support for a rebate scheme for lorry drivers.
Finance Secretary Simon Harris said the day before yesterday (Sunday) that the initial package of measures would be limited to allow room for further help if the energy shock persists.
The European Commission has proposed cuts in national fuel taxes as a way for member states to curb rising energy prices. Italy has also temporarily cut excise duties, while Spain on Friday proposed wider measures worth five billion euros, including cuts in fuel prices and electricity bills.
