Government Confirms Emergency Fuel Excise Cuts From Midnight
Government confirms 20c cut on diesel and 15c on petrol from midnight tonight, with further levy reductions to follow.
| Measure | Detail |
|---|---|
| Diesel excise cut | Reduced by 20c per litre From midnight 25 March to 31 May 2026 |
| Petrol excise cut | Reduced by 15c per litre From midnight 25 March to 31 May 2026 |
| Green diesel excise cut | Reduced by 3c per litre From midnight 25 March to 31 May 2026 |
| NORA levy reduction | Reduced from 2c to a nominal amount on motoring fuel and home heating oil Two months (separate legislation required) |
| Combined levy reductions | Effective cut of 22c per litre on diesel and 17c per litre on petrol Once NORA legislation passes |
| Diesel Rebate Scheme | Maximum rebate increased from 7.5c to 12c per litre for hauliers and bus/coach operators Applies to diesel purchased from 1 January to 30 June 2026 |
| Fuel allowance extension | Season extended by four weeks for 470,000 households including pensioners, carers, people with disabilities and low-income working families Additional €152 per household (€38 per week) |
| Total package cost | Approximately €250 million |
The Government has confirmed a package of temporary measures to reduce the cost of fuel, with excise duty on diesel to be cut by 20 cent per litre and petrol by 15 cent per litre from midnight tonight.
The reductions, announced at a post-Cabinet press conference by Taoiseach Micheál Martin, Tánaiste Simon Harris and Minister of State Seán Canney, will remain in place until 31 May 2026. They take effect subject to a financial resolution being passed in the Dáil this afternoon. The overall package will cost approximately €250 million.
Excise on marked gas oil (green diesel) will also be reduced by 3 cent per litre.
The National Oil Reserves Agency (NORA) levy, currently charged at 2 cent per litre on motoring fuel and home heating oil, will be reduced to a nominal amount for a period of two months. This requires separate legislation, which the Government has said will be pushed through the Oireachtas this week. Once enacted, the effective total reduction in Government levies will be 22 cent per litre on diesel and 17 cent per litre on petrol.
The maximum repayment allowable under the Diesel Rebate Scheme, administered by Revenue, will be temporarily increased from 7.5 cent per litre to 12 cent per litre. This applies to diesel purchased from 1 January 2026 until 30 June 2026, at a cost of approximately €10 million. The measure is aimed at hauliers and bus and coach operators facing significant additional fuel costs.
The fuel allowance season will be extended by an additional four weeks. The 470,000 households in receipt of the fuel allowance will receive additional financial support of €38 per week, totalling €152. The extension will support pensioners, carers, people with disabilities and low-income working families.
Taoiseach Micheál Martin said:
"Today's measures will help shield households and businesses from the recent unprecedented hikes in fuel prices. We are making interventions to reduce the price at the pump for all, to protect our most vulnerable, and to support our haulage industry, as a critical enabler of our economy."
He added:
"We are continuing to monitor the situation and will respond accordingly as the need arises."
Tánaiste Simon Harris said:
"We are reducing excise on petrol and diesel. When taken with a reduction in the NORA Levy, that means 22 cent off a litre of diesel and 17 cent off a litre of petrol."
He cautioned that the situation remains uncertain:
"To put it bluntly, nobody knows what the situation will be in a month from now; we must remain flexible in our response."
Minister of State Seán Canney said:
"These are practical, immediate measures that will make a real difference for people right across the country. People are feeling the pressure every time they fill their car, heat their home or try to keep a business on the road."
Fuels for Ireland has cautioned that the reductions may not be reflected immediately at all forecourts. Kevin McPartlan, CEO of Fuels for Ireland, said the cut will only apply to new fuel supplies delivered after the duty change takes effect. Larger, high-throughput stations may see price changes within hours, while smaller stations that receive deliveries less frequently may take several days.
The financial resolution is expected to be voted on in the Dáil this afternoon, with the excise cuts taking effect from midnight.