Government Extends Fuel Excise and NORA Levy Cuts Until 31 August, With Phased Price Rises to Follow

The Government has announced an extension of temporary reductions to fuel excise and the National Oil Reserves Agency (NORA) Levy, with the cuts now set to remain in place until 31 August before being gradually unwound between September and December.

The reductions had been due to expire on 31 July. The temporary enhancement to the Diesel Rebate Scheme for hauliers and road transport operators has also been extended, running until 30 September 2026.

To avoid a sudden jump in pump prices, the Government has set out a phased pathway back to pre-reduction rates. From 1 September, excise and NORA rates will rise by 9 cent per litre on petrol, 10 cent per litre on diesel, and 2 cent per litre on Marked Gas Oil (MGO); the release lists the MGO increase specifically under the NORA Levy. A further round follows on 1 October, with petrol and diesel both rising by 8 cent per litre, while MGO sees no increase that month. From 1 November, petrol will rise by 5 cent per litre, diesel by 7 cent per litre and MGO by 2.7 cent per litre, with the same increases repeated again on 1 December.

The current reductions trace back to a turbulent few months for motorists and hauliers. A first package of cuts was introduced in March 2026, followed by nationwide protests in April over rapidly rising fuel prices and wider cost-of-living pressures, which saw blockades disrupt routes around the country, including the blockade of the State's only oil refinery, at Whitegate, Co Cork. That unrest led to a further €505 million government support package on 12 April, deepening the excise cuts and pushing back a planned carbon tax increase. Finance Bill 2026, which gave full legal effect to these measures, passed all stages of the Dáil in June 2026.

Taoiseach Micheál Martin said:

"While fuel prices have reduced recently, we are conscious that the situation remains volatile and we are committed to continuing support for families and businesses. This remains our goal and therefore we have agreed that a graduated approach to removal of the temporary relief measures is only appropriate. As previously stated, we will continue to monitor the situation and respond accordingly, including in the context of Budget 2027."

Tánaiste and Minister for Finance Simon Harris said:

"As we have consistently stated, Government is committed to supporting households and businesses across the State during this period of energy price uncertainty. While global oil prices and domestic retail prices have significantly decreased over recent weeks, I recognise that the situation remains uncertain. As such I am providing for a further extension of the full excise rate reductions for auto diesel, petrol and Marked Gas Oil until the end of August. To ensure that there is no sudden cliff edge removal of support, I am providing for a pathway of gradual restoration of rates for an extended period."

Minister of State Seán Canney said:

"This decision reflects the Government's commitment to supporting households and businesses while responding to changing circumstances in the energy market. Although fuel prices have eased in recent weeks, uncertainty remains, and extending these measures provides continued reassurance for families and businesses across the country. The phased restoration of excise rates over the coming months is a sensible approach. It avoids a sudden increase in costs and gives people and businesses greater certainty as these temporary supports are gradually withdrawn."

The Government has estimated the cost of the extension measures at approximately €250 million.