Excise Duty Cuts Announced
The Irish government has announced plans to reduce excise duty on petrol and diesel as a measure to alleviate the impact of volatile fuel prices driven by the ongoing conflict in the Middle East.
Effective from midnight on Wednesday until the end of May, the excise duty on diesel will be lowered by 20 cents per litre, while petrol will see a reduction of 15 cents per litre.
These proposals were agreed upon during a leaders' meeting on Monday and are scheduled for cabinet approval on Tuesday.
Additional Support Measures
In addition to the excise duty cuts, a diesel rebate scheme aimed at hauliers and bus operators is anticipated, with the rebate expected to be backdated.
Diesel prices recently surged from approximately €1.80 (£1.56) per litre to a range between €2.20 and €2.30 over the weekend. Petrol prices also increased sharply, reaching around €2 (£1.73) per litre.
Political Context and Oil Market Response
Earlier, Taoiseach Micheál Martin welcomed the announcement by US President Donald Trump that planned strikes against Iranian power plants had been postponed following "productive" talks with Tehran.
"I would not get into specifics" about whether this development would influence the support measures, Martin stated.
Following the announcement, crude oil prices experienced a decline.
Additional Excise Reductions and Overall Package Cost
The government will also implement an excise reduction for agricultural or green diesel.
The comprehensive package, which includes targeted energy supports for pensioners, carers, and people with disabilities, is projected to cost €235 million.
