Government announces new package of fuel supports

Government has today agreed a new package of measures on fuel costs and to support the transport, farming and fisheries sectors. Today's measures follow significant recent engagement with industry representatives and are in addition to the previously allocated €250 million in targeted supports to assist those experiencing real and immediate financial pressure.

• As part of ongoing engagement with the European Commission, Government will reduce excise on diesel by a further 10 cent (VAT inclusive), bringing the total reduction on diesel to 32 cent (VAT inclusive);
• Government will reduce the excise on petrol by a further 10 cent (VAT inclusive), bringing the total reduction on petrol to 27 cent (VAT inclusive);
• Government will reduce the excise on marked gas oil (green diesel) by a further 2.4 cent (VAT inclusive), bringing the total reduction on green diesel to 7.4 cent (VAT inclusive).
• These overall reductions include the already announced NORA levy reduction.
• Government will defer the planned increase in carbon tax, scheduled for May 1st, until the Budget. This will impact green diesel and non-propellant fuels such as kerosene heating oil, natural gas and solid fuels.

The reductions in the excise on fuel for consumers will take effect from midnight, Tuesday 14th April 2026 and run until 31st July 2026. The already announced NORA levy reduction will also run until 31st July 2026.

To support the haulage and coach sector, the Government will be establishing a new Road Transporters Support Scheme (RTSS). This will be modelled on the Licenced Haulage Support Schemes of 2022 and 2023 deployed to assist the sector with the higher fuel prices following Russia's invasion of Ukraine. The RTSS will provide direct payments to the haulage and coach operators. Payments will be graduated, with smaller businesses receiving a proportionately greater level of support. An initial payment backdated for March 2026 will made to each qualifying haulage or coach operator. The scheme will remain in place for three months. Payments will be made for April and May, if the national average price of diesel exceeds €1.90 per litre in the month.

As well as the above, for coach operators providing local link and school transport services, a separate support measure will be introduced through the contractual arrangements with providers of these services.

The combined cost per month of these supports to the transport sector is estimated at €40 million.

Government has also announced a comprehensive €100 million Fuel Subsidy Support Scheme to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs. The payments will cover the months of March up to the end of July which also coincides with peak fuel usage season for field work on farms.

The package comes in response to the sharp rise in the price of Marked Gas Oil (MGO), commonly known as green diesel, which has nearly doubled since February due to ongoing geopolitical instability in the Middle East. Prices have risen from €0.97 per litre in late February to €1.80 per litre in recent weeks, placing severe financial pressure on key sectors of Ireland's food production economy.

The scheme will provide €20 million per month in supports, with funding directly linked to fuel usage last year to ensure those most impacted by the fuel price increase receive the greatest assistance.

Up to €5 million per month will be allocated to support fishers and other sectors effected such as forestry and specialist horticulture. Fishers are facing acute challenges, exacerbated by very high fuel costs. A tailored scheme for fishers will be developed, subject to EU State Aid requirements.

Taoiseach Micheál Martin said:

"The Government recognises and understands the pressures that have arisen due to rising fuel costs as a result of war in Ukraine and the Middle East on all families and businesses.

"I am very conscious of the fact that we have to ensure that we support people, protect key services and make critical investments.

"The package we have agreed today is a significant response to real pressures being felt here and globally."

Tánaiste Simon Harris said:

"We are living through an unprecedented global energy crisis. I know the pain, the stress, and the very real financial pressure that so many across the country are feeling as a result of this. As a government, we hear you, we have acted, and we are taking further action today.

"We were clear when we announced our initial package of measures last month that we would keep our powder dry, and that everything would remain under review. We ruled nothing out and noted the need for continued agility, conscious of the enormous global instability that is ongoing.

"These measures are an appropriate package that ensures that everyone who is feeling under pressure right now is given some form of relief."

Minister of State at the Department of Transport with responsibility for International and Road Transport, Logistics, Rail and Ports, Seán Canney said:

"Our focus as a Government is on practical support. We know the pressure hauliers, farmers, transport operators and others are under, and this new Transport Support Scheme is about helping them through that.

"This is about keeping supply chains moving, supporting jobs and making sure our economy continues to function.

"The further reduction in excise duty on petrol and diesel will also ensure that relief is felt directly at the pumps by motorists and businesses across the country."

Photos available from the Government of Ireland Flickr page here: https://www.flickr.com/photos/governmentofireland/albums/72177720333045085