Irish government to discuss gradual reversal of fuel excise cuts

Irish government party leaders are set to discuss a gradual reversal of the excise duty cuts on petrol and diesel next Monday. Tánaiste and Minister for Finance Simon Harris stated that there would be no abrupt end to the reductions, which were implemented following major fuel protests in April and were initially scheduled to expire at the end of July.

Harris acknowledged that falling international oil prices cannot be ignored, echoing comments from the Taoiseach who indicated the matter would remain under review. Sinn Féin's Pearse Doherty previously warned that petrol prices could rise by 27 cents per liter and diesel by 32 cents if the excise duty reductions were abolished entirely at the beginning of August.

“

We will have to think this through and see what is an appropriate and proportionate response.

Sources suggest the government is developing a timeline for a phased withdrawal of the excise reductions, possibly over two or three stages. These changes might be announced after the upcoming Cabinet meeting, though the issue is not yet formally on the agenda. This approach aims to provide certainty for the public and maintain flexibility should international events change.

Government figures believe that the public now recognizes falling fuel prices at the pump, despite the upheaval caused by April's protests. Minister Harris noted that the situation has changed since the initial package was introduced, citing lower oil prices and the opening of the Strait of Hormuz. He indicated that any decision would be proportionate and that a sudden return to previous rates is unlikely.

“

I don't believe there will be some sort of cliff edge where everything will return to where it was before the package.