Government to Extend, Taper Fuel Excise Cuts Beyond July 31st
Irish government leaders are meeting to extend and taper fuel excise duty cuts beyond the July 31st expiry. The cuts, reducing petrol by 27c and diesel by 32c, will likely be partially extended then gradually phased out to avoid a sudden price hike and manage inflation.
Government leaders are meeting Monday evening to discuss extending cost-of-living cuts to petrol and diesel excise duty, which are set to expire on July 31st. Taoiseach Micheál Martin and Tánaiste Simon Harris have stated there will be no «cliff-edge» end to the supports, which currently reduce petrol by 27c and diesel by 32c.
Sources indicate the cuts will be extended, at least partially, beyond July 31st, then tapered off over subsequent months. This approach allows flexibility to reverse course if commodity prices rise and aims to prevent disruptions like those seen in April from hauliers and agricultural contractors.
Cabinet approval could come as early as Tuesday, involving Martin, Harris, and Independent minister Seán Canney. Legislation must pass through the Oireachtas before the summer recess on July 16th. A staggered unwinding could begin August 1st, though some suggest September 1st. The Department of Finance estimates the current cuts reduce inflation by 0.6 per cent.