Government to Restore Fuel Excise Phased from September, Costing €270 Million

The government is set to approve a phased restoration of fuel excise duties starting 1 September, extending current reductions on petrol and diesel until then. The cuts will be gradually unwound over four months, from September to December. Tánaiste and Finance Minister Simon Harris stated that this approach provides certainty for households and businesses, avoiding a «cliff edge» increase of 32 cent per litre on diesel and 27 cent on petrol that would have occurred at the end of July.

The excise reductions were initially implemented in April due to a spike in global oil prices. Following recent peace talks between the US and Iran, global oil prices have fallen to around $73 or $74 (€64 or €65) a barrel. Harris expects petrol stations to pass these lower wholesale prices on to customers. The extension of the excise package until September is estimated to cost the Exchequer approximately €270 million.

Taoiseach Micheál Martin noted that the phased approach reflects an improving outlook for global energy markets, despite remaining uncertainties. The government faced pressure from opposition parties and industry groups to prevent a sudden rise in fuel costs. Harris rejected claims that the decision was influenced by potential fuel protests, asserting it was about making correct economic decisions for Ireland.