Government Extends Reduced Fuel Excise Until End of October
Government extends reduced fuel excise until 31 October 2026, delaying planned rises. Rates return gradually from 1 November in four stages.
The Government has approved an extension of reduced excise duty on petrol, diesel and marked gas oil, keeping current rates in place until 31 October 2026. This means increases due to take effect from 1 September will not now go ahead.
The current reductions in excise duty on petrol, auto diesel and marked gas oil (MGO) will remain fully in place until 31 October 2026, the Government confirmed on 27 August 2026. Had the scheduled restoration of excise proceeded, it would have added 10 cent to a litre of diesel and 9 cent to a litre of petrol.
From 1 November, excise rates will be restored on a phased basis rather than in a single increase, with the restoration taking place over four stages and concluding at the end of February 2027.
On 1 November, petrol will rise by 5 cent, diesel by 7 cent and MGO by 2.7 cent. A further increase of 5 cent on petrol and 7 cent on diesel is due on 1 December. On 31 January, petrol will rise by a further 7 cent, diesel by 8 cent and MGO by 2.7 cent, with a final increase of 8 cent on both petrol and diesel due on 28 February 2027.
The Government also agreed to extend the reduced NORA levy until 31 October 2026, and to extend the enhanced Diesel Rebate Scheme until the end of December 2026, providing continued support to qualifying road transport operators. The NORA levy is scheduled to revert to 2 cent per litre from 1 November 2026.
The measures are subject to a financial resolution in the Dáil on 28 August 2026. The estimated cost of the temporary excise reductions, from 1 September until the end of the phased restoration on 28 February 2027, is €407 million.
Micheál Martin, Taoiseach:
"The Government has today acted to help protect families and businesses from further short-term increases in petrol and diesel costs, due to the continuing international pressure on oil prices."
Simon Harris, Tánaiste and Minister for Finance:
"Today the Government has taken a common-sense decision to keep the cost of petrol and diesel down and give households and businesses greater certainty at a time of continued volatility in global energy markets."
Minister of State at the Department of Transport, Seán Canney, and Minister for Climate, Environment and Energy, Darragh O'Brien, also welcomed the extension, noting the pressure households and transport operators continue to face from elevated fuel costs.
