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The Irish Government has today announced a package of temporary measures aimed at reducing fuel costs in response to the ongoing conflict in the Middle East. There is no sign that Stormont or the UK Government are intending to announce general cuts to vehicle fuel although a £17m package announced by the UK Government is intended to benefit low income households for home heating costs.
Currently fuel costs start at around £1.67 (€1.93) for Diesel in Newry with prices around €2.30 in Dundalk. The reduction will bring this down but as it currently stands fuel will still be slightly cheaper north of the border.
The measures will take effect from midnight tonight and run until 31 May 2026 and will see a saving on a litre of diesel of 22 cent and 17 cent on a litre of petrol. The cuts will be made possible by reductions in the rate of Mineral Oil Tax (MOT) on petrol and diesel. On a VAT inclusive basis, the rate will be reduced by 15 cent per litre for petrol and 20 cent per litre for auto diesel. The NORA levy will also be reduced from 2 cent per litre to a nominal amount for a period of two months.
Tánaiste and Minister for Finance Simon Harris said: "Today, Government is taking action to help households and businesses with the cost of fuel and energy."
A reduction in Marked Gas Oil (MGO) of 3 cent per litre has also been announced, alongside an expansion of the Diesel Rebate Scheme for haulage and bus passenger operators. The maximum repayment under that scheme will increase from 7.5 cent to 12 cent per litre of diesel, backdated to 1 January 2026 and running until 30 June 2026.
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."
