Ireland Fuel Duty Cut: Petrol & Diesel Prices to Fall Amidst Global Concerns
The Irish government is to implement a temporary cut to excise duty on petrol and diesel, alongside an extension of the Fuel Allowance, in response to soaring fuel costs driven by escalating tensions in the Middle East. The measures, agreed at a leaders’ meeting on Monday evening, will witness diesel excise duty reduced by 20 cents and petrol by 15 cents a litre from midnight on Wednesday until the end of May.
A rebate scheme for hauliers and bus operators is as well expected to be introduced, with payments backdated to cover recent price increases. The Fuel Allowance, a weekly payment of €38 to assist with heating costs, will be extended beyond its usual April end date as part of a broader package of support measures to be formally announced on Tuesday.
The government’s intervention follows sustained pressure to address rising fuel prices, which have been exacerbated by the conflict between the US and Israel and Iran. Households have reported significant increases in home heating oil costs, with prices doubling to €800 for 500 litres, alongside substantial rises in petrol and diesel prices.
Taoiseach Micheál Martin welcomed the announcement by US President Donald Trump that military strikes against Iranian energy infrastructure had been “postponed,” following discussions with Tehran. Trump had previously threatened to “obliterate” Iran’s power plants if the country did not reopen the Strait of Hormuz. In a post on his Truth Social platform, Trump stated he would delay the strikes by five days following “very good and productive conversations” with Iranian officials.
The postponement of potential military action led to a drop in crude oil prices, with Brent crude falling by up to 10% before settling at around 8% lower, just under $104 a barrel. Asked whether this price decrease would affect the government’s planned supports, Martin stated that rising fuel prices had “already had an impact on people” but declined to comment on whether the drop would alter the measures. “The figures are volatile, we know that,” he said. “They’ve been up and down.”
Martin also highlighted the necessitate for “a more sustained engagement with the haulage industry,” responding to concerns that short-term measures would be insufficient for the sector, which he described as “a key part” of Irish trade. He indicated that the plans to be announced on Tuesday would need to be “measured and informed,” adding, “I feel we do need a set of proposals to deal with the haulage industry in the long term, to make sure that it’s a viable, sustainable industry.”
According to figures released by the U.S. Energy Information Administration on March 16, 2026, the U.S. Average price for regular gasoline was $3.72 per gallon, a 21.8 cent increase from the previous week. Diesel fuel averaged $5.071 per gallon, a 21.2 cent increase. The RAC has reported that diesel prices in the UK have risen by an average of 18p per litre to 160.3p since the end of February, reaching their highest level in 16 months. Petrol prices have increased by 7% over the same period, rising to 141.5p a litre.
Fuel duty in the UK currently stands at 52.95p a litre, including a temporary 5p cut. VAT accounts for 17% of the price of both petrol and diesel, while fuel duty represents 38% of the price of petrol and 33% of the price of diesel, according to the RAC.