Excise duty on fuel to be phased out from November

Government Ministers have agreed to sign off an extension to the excise cuts until February, following proposals that will go to Cabinet on Thursday morning.

The cuts were due to end in September, and if this had gone ahead, petrol would have risen by 9 cent per litre and diesel by 10 cent, putting diesel over €2 per litre.

In a memo for Ministers, Simon Harris said that the reductions should remain in place until November 1 2026.

Last week, the Government made a statement acknowledging the situation on gov.ie, where they said: “As a Government, we have said since the conflict in the Middle East began that we would monitor the situation closely and reserve the right to adjust our response as required, with nothing ruled out.

“This step-by-step, phase-by-phase approach has ensured that we have made one of the largest fiscal interventions of any EU member state this year when it comes to responding to the impacts of the crisis, helping to reduce the cost burden at the petrol pump, support those most at risk of energy poverty, and assist key sectors that are critical to keeping our economy moving.

“However, it is clear that in the intervening period there has been a change in the global situation and as a consequence the cost of petrol and diesel for consumers.

The Taoiseach, Tánaiste and Minister of State Seán Canney have kept in close contact in recent days and weeks and this morning agreed that the planned increases on September 1 and October 1 will not now go ahead. The Government will agree the next steps next week.

“Ultimately the greatest economic intervention we can see is de-escalation in the Middle East - and that is still the case. We will continue to be agile and rule nothing out.”