Iran Attacks Israel & Fuel Prices to Fall: Latest Updates
The price of diesel and petrol in Ireland will fall from 12am on Wednesday following a Government decision to cut excise duty, as diplomatic efforts continue to de-escalate tensions in the Middle East following a fresh wave of Iranian missile attacks on Israel.
Minister for Finance Simon Harris will present proposals to cabinet on Tuesday to reduce excise duty on diesel by 20 cent and on petrol by 15 cent per litre, with the reductions remaining in place until the end of May. The changes will be subject to a financial resolution being passed in the Dáil.
The move comes amid heightened volatility in global energy markets and escalating conflict. Iran launched further missile attacks on Israel on Tuesday, triggering air raid sirens in multiple locations, including Tel Aviv, according to reports from Israeli media. These attacks followed a statement from US President Donald Trump on Monday claiming “particularly good and productive” conversations with Iranian officials regarding a potential resolution to hostilities. Iran’s parliament speaker, Mohammad Baqer Qalibaf, however, dismissed Trump’s claims as “fake news,” stating that no negotiations had taken place.
Whereas Trump initially indicated he would postpone a planned strike on Iran’s energy infrastructure for five days, the Iranian Revolutionary Guards (IRGC) subsequently announced fresh attacks on US targets, describing Trump’s statements as “psychological operations.”
The situation is further complicated by concerns over the security of commercial shipping in the Strait of Hormuz, a critical waterway for global oil supplies. Bahrain has circulated a draft UN Security Council resolution seeking authorisation for countries to use “all necessary means” to protect shipping in the region, a move supported by Gulf Arab states and the United States, though its passage is considered unlikely due to potential vetoes from Russia and China. France has proposed a more conciliatory draft resolution.
The Kremlin has warned against any spillover of the conflict into the Caspian Sea, stating that Russia would view such a development “extremely negatively.”
The economic impact of the escalating tensions is being felt across Europe. The eurozone’s economic growth has almost stalled this month, with input cost inflation accelerating sharply to a three-year high, according to S&. P Global. The flash eurozone PMI Composite Output Index fell to 50.5 in March, a 10-month low, indicating a rising risk of an economic downturn.
In Ireland, Fuels for Ireland chief executive Kevin McPartland cautioned that the fuel price reductions may not be immediately reflected at all petrol stations, as prices are dependent on delivery schedules. He explained that stations with frequent deliveries are likely to see price drops sooner, while those with less frequent deliveries may take up to a week to adjust. Minister of State for International Development and Diaspora, Neale Richmond, stated the Government will work with fuel operators to ensure the cuts are passed on to consumers “as quickly as possible.”
The Government is also extending the fuel allowance season by four weeks, providing an additional €152 to eligible households. An increased diesel rebate, backdated to January 1st, will also be provided to eligible parties, though the exact amount has not yet been specified.
Tánaiste Simon Harris acknowledged the volatility of global markets and cautioned against long-term commitments, stating that any interventions would be for a “short, time-bound period.” He also reaffirmed the Government’s intention to proceed with planned carbon tax increases in May, arguing that the excise duty cuts and fuel allowance extension would have a more immediate impact.
Ursula von der Leyen, President of the European Commission, stated on Tuesday that the global energy situation was now “critical” and that negotiations with Iran were of “utmost importance.”