Dublin: Taoiseach Micheál Martin has reiterated that the Government’s 2027 Budget will focus on reducing the cost of living for families and sectors heavily dependent on fuel, while confirming that the temporary reduction in petrol and diesel excise duty will not be extended.
Pressure has been mounting on the government to maintain the fuel tax relief amid concerns over rising energy and transport costs. However, Martin said the government remains committed to phasing out the temporary measures.
The excise duty reductions, introduced in response to soaring oil prices linked to the conflict involving Iran and disruptions around the Strait of Hormuz, currently amount to around 27 cent per litre for petrol and 32 cent for diesel. The measures are due to begin being withdrawn from September 1.
Speaking at the Tullamore Show on Sunday, Martin acknowledged the concerns surrounding fuel prices but said the government had no plans to extend the temporary reductions.
Budget to focus on cost of living
Martin said the October budget would be designed as a cost-of-living budget, with measures aimed at easing financial pressure on households and sectors particularly dependent on fuel.
He said the government would use taxation and other measures to reduce costs for families and businesses, while also introducing measures intended to reward employment and work.
Finance Minister Simon Harris has also indicated that the budget will include a tax package aimed at supporting workers.
The Taoiseach said making childcare more affordable would remain another key government priority.
The government has set out plans to reduce childcare costs, with a longer-term objective of bringing the monthly cost down to around €200 for families.
Martin said the government also had sufficient flexibility to respond to changing economic and geopolitical circumstances.
He pointed to the measures introduced since the outbreak of conflict in the Middle East as evidence that the government could adapt its policies when necessary.
Despite the government’s focus on reducing living costs, Martin acknowledged that not every financial pressure could be resolved through a single budget.
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