The Irish government is implementing a reduction in excise duty on both petrol and diesel. This measure aims to alleviate financial pressure on citizens facing fluctuating fuel costs, a situation exacerbated by recent events in the Middle East.

Effective from midnight on Wednesday, the excise duty on diesel will be lowered by 20 cents per litre, and on petrol by 15 cents per litre. This temporary reduction is scheduled to remain in place until the end of May.

These proposed changes were finalized during a leaders’ meeting held on Monday and are slated for cabinet approval on Tuesday. In addition to the direct excise duty cuts, the government is also reportedly considering a diesel rebate scheme for hauliers and bus operators. This rebate is expected to be backdated to cover recent price increases.

The need for such measures is underscored by recent fuel price hikes. Diesel prices, which were around €1.80 per litre (approximately £1.56), surged to between €2.20 and €2.30 per litre over the weekend. Similarly, petrol prices saw a significant increase, reaching approximately €2 per litre (around £1.73).

Earlier, the Taoiseach (Irish Prime Minister), Micheál Martin, acknowledged the US President’s announcement regarding the postponement of strikes against Iran’s power plants, attributing the decision to “productive” discussions with Tehran. Following this announcement, crude oil prices experienced a decline. However, the Taoiseach declined to provide specific details on whether this international development would influence the scope of domestic support measures.

The excise reduction will also extend to agricultural and green diesel. The comprehensive package, which includes targeted energy supports for pensioners, carers, and individuals with disabilities, has an estimated overall cost of €235 million.