The price of diesel and petrol is set to be cut by the Government from midnight on Tuesday in response to the energy crisis caused by the war in the Middle East.
Minister for Finance Simon Harris will bring forward proposals at Tuesday’s Cabinet meeting to cut excise duty on diesel by 20 cent and on petrol by 15 cent until the end of May.
These excise measures will take effect from 12am on Wednesday, subject to a financial resolution being passed in the Dáil.
Additionally, expected changes to the National Oil Reserve Agency (Nora) levy will mean an effective cut in Government levies of an extra 2c each on diesel and petrol. The timing of the changes to this levy have not yet been announced. The changes to the Nora levy require primary legislation, but Government sources have said that it will be pushed through the Oireachtas this week.
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The changes were agreed at a meeting of Coalition party leaders on Monday night, attended by Taoiseach Micheál Martin, Harris, and Seán Canney representing Independent TDs in Government.
There will also be a diesel rebate scheme for hauliers and bus operators, which will be backdated to January and keep supply chains functioning.
The measures will be temporary but will be reviewed.
It is also understood that the fuel allowance, currently worth €38 per week, will be doubled to €76 per week for the 470,000 people in receipt of the allowance. The season was due to end on March 31st, but is now being extended into April.
Earlier on Monday, Martin had pledged there would be short-term targeted measures to ease the pressure on the public caused by rising energy prices.
Martin earlier responded to concerns raised by Sinn Féin that the mooted tax rebate for hauliers would limit scope for cutting excise on diesel for other motorists, with the Taoiseach stressing the importance of the haulage industry.
Speaking at a press conference at a housing development site in Dublin, Martin said: “We will be looking at, first of all, it’s an immediate set of measures, short term, targeted in terms of the immediate pressures on the public.”
He said that more broadly the Government would be looking at “energy efficiency” when asked if steps such as increased grants for solar power or reducing speed limits on motorways would be looked at, though he also said: “We already have a very proactive grant system.”
Oil prices fell in the wake of US president Donald Trump’s announcement that he was postponing threatened attacks on Iran’s energy infrastructure.
Asked if the Government would take such oil price reductions into account when considering support measures, Martin replied: “I’m not getting into specifics of that kind. The figures are volatile. We know that. They’ve been up and down, but if you look at it cumulatively over the last number of weeks, they’ve had impact.”
Earlier, Minister for Public Expenditure Jack Chambers said the Government’s supports to help ease rising energy prices would be strictly limited and withdrawn as quickly as possible.
Warning of the scale of the crisis, he said the Middle East conflict threatened “the biggest impact on the global economy for decades if it continues”, and had “huge ramifications for the growth trajectory of every economy in Europe and the world”.
Meanwhile, Iran has denied claims by US president Donald Trump that ceasefire contacts are under way to end the Middle East war, now in its fourth week.
Trump revealed that contacts with Tehran had taken place over the weekend “regarding a complete and total resolution of our hostilities in the Middle East.”
He said the conversations, which will continue throughout the week, mean military strikes against Iranian power plants and energy infrastructure have been postponed for five days, conditional on “ongoing successful discussions.”
“We’re doing a five-day period, and we’ll see how that goes. If it goes well, we’re going to end up with settling this,” he told reporters. “Otherwise, we’ll just keep bombing our little hearts out.”
In a series of media interviews following the announcement, Trump claimed the two countries were discussing 15 points to end the war, with Iran giving up nuclear weapons as points “number one, two and three”.
But Tehran denied talks had taken place.
Iran’s foreign ministry said Trump’s remarks were intended to lower energy prices and buy time for his military plans.
