Fuel Duty Cut: Govt Responds to High Energy Prices

The Irish government will cut excise duty on petrol and diesel in an effort to alleviate rising fuel costs for consumers. The measures, agreed upon by government leaders Monday evening, will reduce excise duty on diesel by 20 cents and petrol by 15 cents per litre from midnight Wednesday until the end of May.

Fuel Price Relief Package

In addition to the excise duty cuts, a diesel rebate scheme for hauliers and bus operators is expected to be implemented with retroactive effect. The government also plans to extend the Fuel Allowance, a weekly payment of €38 to help with heating costs, as part of a broader package of targeted measures to be announced Tuesday.

The decision comes amid growing pressure on the government to intervene in response to soaring fuel prices, which have been exacerbated by tensions between Iran and the US and Israel. Households have reported significant increases in home heating oil prices, with some paying €800 for 500 litres, alongside high costs for petrol and diesel.

US-Iran Tensions Ease

Taoiseach Micheál Martin welcomed the announcement by US President Donald Trump that military strikes against Iranian energy infrastructure had been “postponed,” following talks with Tehran. Trump had previously threatened to obliterate Iran’s power plants if the country did not reopen the vital Strait of Hormuz.

However, in a post on his Truth Social platform, Mr Trump said he would delay the strikes by five days following “very good and productive conversations” with Tehran over the previous two days. Following Trump’s announcement, crude oil prices dropped, with Brent crude oil falling by up to 10%, later settling at around 8% lower at just under 104 dollars a barrel.

Martin stated, “It’s critical that the war ends.” He also addressed concerns raised by hauliers, acknowledging that short-term measures may not be sufficient for the sector, which he described as “a key part” of Irish trade. He indicated that the government plans to develop a more sustainable, long-term solution for the haulage industry.

The Taoiseach emphasized the need for “a more sustained engagement with the haulage industry” and stated that the plans being announced Tuesday would need to be “measured and informed.”