Government party leaders have reached an agreement to reduce excise duty on fuel, with diesel set for a 20-cent reduction and petrol a 15-cent reduction per litre until the end of May. The measures are slated to take effect from midnight tonight, pending a financial resolution in the Dáil.
Fuel Costs: What’s Changing
The proposals, brought forward by Tánaiste Simon Harris, also include a diesel rebate scheme for hauliers and bus operators, which will be applied retroactively. The overall package, encompassing targeted energy supports for pensioners, carers, and people with disabilities, is estimated to cost €235 million.
In addition to the excise duty cuts, a pause in the NORA levy could result in an additional effective cut of 17 cent on petrol and 22 cent on diesel, once the necessary legislation is passed. The Tánaiste is expected to present these proposals to Cabinet this morning.
Political Response
The proposed measures have already drawn criticism from opposition parties. Labour Party Finance Spokesperson Ged Nash characterized the Government’s move as “timid and anaemic,” arguing that “two weeks of additional fuel allowance payments and a slight reduction on prices at the pump won’t cut it.”
Sinn Féin expressed disappointment, stating the Government “have deliberately abandoned families dependent on home heating oil by refusing to remove the excise during time of crisis.” The party intends to propose amendments to the plan in the Dáil today, seeking increased support for workers, and families.
A possible next step is a vote on the financial resolution in the Dáil, which is required for the excise duty cuts to take effect. Further legislative action will be needed to enact the pause on the NORA levy. Depending on the outcome of these votes, and the amendments proposed by Sinn Féin, the final form of the fuel relief package could be altered.
Frequently Asked Questions
What fuel types will witness a price reduction?
Both diesel and petrol will see a price reduction. Diesel will be cut by 20 cent per litre, and petrol by 15 cent per litre, until the end of May.
Who will benefit from the diesel rebate scheme?
The diesel rebate scheme will benefit hauliers and bus operators, and will be backdated.
What is the NORA levy?
The National Oil Reserves Agency (NORA) levy is charged at two cents per litre on motoring fuel and home heating oil.
As fuel prices continue to be a significant concern for many, will these measures provide sufficient relief to households and businesses?
