Dublin: The Irish government is preparing to introduce measures, including potential reductions in fuel excise duty, to address rising energy costs. Simon Harris, Tánaiste and Minister for Finance, indicated that targeted actions could be announced as early as next Tuesday.
Harris emphasised that reducing excise duty remains the quickest and most effective way to ease pressure on consumers, noting that similar steps have been implemented previously. In contrast, measures such as energy credits require legislative processes and take longer to deliver relief.
He cautioned that the full economic impact of the ongoing conflict involving Iran remains uncertain, describing the current period as one of significant global economic volatility. “We need to remain agile in our response,” he said, underlining the government’s readiness to act swiftly.
Global oil prices continue to climb, intensifying pressure on domestic fuel costs. Brent crude futures rose to €112.58 per barrel (up 3.66%), while U.S. West Texas Intermediate (WTI) crude increased by 2.78% to €98.81 per barrel. Harris did not rule out further interventions, including measures to control household energy bills, similar to those adopted by other European countries.
The minister had previously rejected a proposal from Sinn Féin to legislate a six-month reduction in excise duty, arguing that the government could act more swiftly through a finance bill. He also noted that the opposition proposal did not address fuel allowances. Harris reiterated that the government is aware of the urgency of short-term measures and is in a position to support households, citing the strength of the Irish economy.
Industry and Political Reactions
Fuels for Ireland has called for a reassessment of Ireland’s high fuel taxation. Its CEO, Kevin McPartlan, questioned why Ireland maintains higher fuel taxes than any other EU member state, contributing to some of the highest fuel prices in the bloc.
He noted that while reductions in VAT or excise duty should, in principle, benefit consumers, continued increases in wholesale prices are offsetting these gains. Over the past 48 hours alone, the wholesale price of diesel has risen by 13 cents per litre—approximately 15 cents when VAT is included. He added that fuel prices have increased by a similar margin since the government signalled potential tax cuts.
Shane Moynihan, a TD for Fianna Fáil, stressed the importance of timely government intervention to mitigate rising fuel costs.
Meanwhile, opposition criticism has intensified. Mary Sherlock, TD for the Labour Party, accused the government of acting too slowly and only under pressure. She argued that the country was already grappling with a cost-of-living crisis prior to the recent geopolitical tensions, with households burdened by rising gas, electricity, and food prices.
According to Sherlock, food costs have increased by more than 25% over the past four years, and recent budgets have failed to adequately address the ongoing crisis. She contended that current measures fall short of delivering meaningful relief to struggling households.
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