Government Extends Fuel Excise Cuts to February 2027

The Irish Government has decided to extend the temporary reduced fuel excise rates until the end of February 2027, with a phased restoration over the next four months. The initial cuts, introduced in April, have lowered the price of diesel by 32 cents per litre and petrol by 27 cents per litre. Originally set to expire in November, the extension aims to continue supporting consumers and businesses amid rising costs.

Minister for Finance Simon Harris announced that the excise rates will be restored gradually in four phases, completing the process by the end of June 2027. Additionally, planned Carbon Tax increases for petrol and diesel have been deferred to next year, with two scheduled rises. The reduced NORA levy and the enhanced Diesel Rebate Scheme will also be extended until the end of 2026.

The Department of Finance is exploring a more favorable tax treatment for Hydrotreated Vegetable Oil (HVO) to encourage greener alternatives. The minister emphasized that these measures will help lower inflation, reduce business costs, and keep more money in people's pockets. The Carbon Tax on home heating oil and natural gas will also be reduced instead of increasing as previously planned.

However, the Irish Road Haulage Association (IRHA) expressed mixed feelings about the support for the industry. IRHA President Ger Hyland acknowledged the assistance but questioned whether it would be enough to sustain all hauliers. He hoped the measures would prevent further protests but cautioned that time would tell if the support would suffice.