Government Announces New Fuel Support Package

The Government has announced a significant new package of fuel supports following weeks of rising costs driven by conflict in the Middle East, with measures taking effect from midnight on Tuesday, 14 April.

The package includes further reductions in excise duty: diesel will see an additional 10 cent cut (VAT inclusive), bringing the total reduction to 32 cent per litre, while petrol will also be reduced by a further 10 cent, bringing the total reduction to 27 cent per litre. Marked gas oil, commonly known as green diesel, will be cut by a further 2.4 cent, bringing the total reduction to 7.4 cent per litre.

The Government will also defer the planned increase in carbon tax, scheduled for 1 May, until the Budget. This will affect green diesel and non-propellant fuels such as kerosene heating oil, natural gas, and solid fuels.

The fuel reductions will take effect from midnight on Tuesday, 14 April 2026 and run until 31 July 2026.

Transport Sector

A new Road Transporters Support Scheme (RTSS) will be established to support the haulage and coach sector, modelled on the Licenced Haulage Support Schemes of 2022 and 2023 which were deployed during the fuel price surge following Russia's invasion of Ukraine. The RTSS will provide direct payments to haulage and coach operators, with smaller businesses receiving proportionately greater support. An initial payment backdated to March 2026 will be made to each qualifying operator, and the scheme will remain in place for three months, with payments continuing for April and May if the national average price of diesel exceeds €1.90 per litre.

The combined monthly cost of these transport supports is estimated at €40 million.

Agricultural Sector

A comprehensive €100 million Fuel Subsidy Support Scheme has also been announced to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs. Payments will cover the months of March to the end of July, coinciding with the peak fuel usage season for field work on farms.

The scheme responds to the sharp rise in the price of green diesel, which has nearly doubled since February due to ongoing geopolitical instability in the Middle East, rising from €0.97 per litre in late February to €1.80 per litre in recent weeks.

Up to €5 million per month will be allocated to support fishers and other affected sectors such as forestry and specialist horticulture.

Taoiseach Micheál Martin:

"The Government recognises and understands the pressures that have arisen due to rising fuel costs as a result of war in Ukraine and the Middle East on all families and businesses. The package we have agreed today is a significant response to real pressures being felt here and globally."

Tánaiste Simon Harris:

"We are living through an unprecedented global energy crisis. I know the pain, the stress, and the very real financial pressure that so many across the country are feeling as a result of this. As a government, we hear you, we have acted, and we are taking further action today."

Minister of State Seán Canney:

"Our focus as a Government is on practical support. We know the pressure hauliers, farmers, transport operators and others are under, and this new Transport Support Scheme is about helping them through that."

Today's measures follow significant recent engagement with industry representatives and are in addition to the previously allocated €250 million in targeted supports.