Fuel excise cuts to be unwound by February

**Fuel Excise Cuts to Be Phased Out by February**

DUBLIN — The Irish government announced that the temporary reductions in fuel excise duties introduced earlier this year will be reversed in a four‑stage process beginning in November and concluding at the end of February.

The existing cuts will remain in effect until the end of October, after which the Dáil will be recalled from its summer recess on Friday for a one‑hour debate on the measures. The debate follows a cabinet meeting on Thursday in which ministers decided not to implement the previously scheduled excise increases that were to take effect on 1 September. Those increases would have added €0.10 per litre to diesel and €0.09 per litre to petrol.

Taoiseach Micheál Martin said the government’s approach “balances competitiveness and cost‑of‑living concerns with the need for sustainable budgetary policies.” He added that the phased restoration of excise rates is intended to avoid a sudden rise in pump prices, which the government aims to keep below €2 per litre.

Current fuel prices, according to government data, are approximately 183 cents per litre for petrol and 193 cents per litre for diesel. The original cuts, introduced in April after protests by farmers, agricultural contractors and hauliers over rising operating costs, reduced excise by 32 cents per litre for diesel and 27 cents per litre for petrol. Those cuts were later extended, but ongoing uncertainty in the Middle East prompted the government to seek further parliamentary approval.

The Social Democrats criticised the government’s handling of the issue. Deputy leader Cian O’Callaghan described the situation as a “doom spiral” and argued that the government is reacting to external factors, including policies in the United States, rather than pursuing a clear long‑term strategy. He called for targeted energy supports, including a €400 energy credit for households earning €70,000 or less, and suggested a levy of €85 million on data centres to fund such measures. O’Callaghan also urged greater investment in renewable energy, such as solar power, to reduce dependence on fossil fuels.

In addition to the fuel excise schedule, the coalition government agreed to extend the reduced National Organic Reduction (NORA) levy until 31 October and to prolong the enhanced Diesel Rebate Scheme through December.

The phased reversal of the excise cuts will be implemented over four stages from early November to the end of February, with the exact dates to be confirmed by the Department of Finance.

Article and image source: breakingnews.ie