European Commission Approves €85 Million Fuel Aid Scheme for Irish Farmers
European Commission approves €85m Irish State aid scheme to help farmers cope with rising fuel prices linked to the Middle East crisis.
The European Commission has approved an €85 million Irish State aid scheme to help agricultural producers cope with rising fuel prices linked to the Middle East crisis.
The scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF), which the Commission adopted on 29 April 2026. It targets companies active in the primary production of agricultural products.
Ireland notified the €85 million scheme to the Commission to ease the impact of higher fuel costs during the farming sector's peak fuel usage months of March to July 2026. The scheme will run until 31 December 2026.
According to the Commission, the price of fuel in Ireland was around €0.80 per litre on 23 February 2026. By 30 March 2026 it had risen to almost €1.30 and has remained around that level since, a 60% increase.
The support will be delivered as direct grants based on the volume of fuel each company used in 2025. Companies can receive up to €0.20 for every litre of fuel purchased during the eligible five-month period.
The Commission assessed the scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU, which allows Member States to support the development of certain economic activities under set conditions, alongside Sections 1 and 2.1 of the METSAF.
It found that the scheme was in line with the framework's conditions, concluding that it was necessary, appropriate and proportionate to facilitate the development of an economic activity, and would not adversely affect trading conditions to a degree contrary to the common interest.
The METSAF is a targeted and temporary framework set up to respond to the effects of the Middle East crisis on some of the economy's most exposed sectors: agriculture, fishery, transport and energy-intensive industries. It will remain in place until 31 December 2026.
Cork is one of Ireland's largest farming counties, and agricultural producers across the region are among those covered by the scheme.
The non-confidential version of the decision will be published under case number SA.123329 in the Commission's State aid register.
