Overview
- Coalition leaders agreed on Monday to keep the 32 cent per litre diesel and 27 cent per litre petrol excise reductions in place until 1 September and to restore previous rates in stages between September and the end of the year.
- The temporary measures reduce pump prices for consumers and will cost the Exchequer about €270 million, with the restoration scheduled over four dates to prevent a sudden price rise.
- Officials say recent falls in global oil and forecourt prices undercut the original rationale for the cuts and the Department of Finance estimates the measures lowered headline inflation by roughly 0.6 percentage points.
- Any legal change to excise rates must be passed through the Oireachtas before the summer recess on 16 July and Cabinet will consider a memo from Tánaiste Simon Harris setting out the phased approach.
- Ministers signalled readiness to manage protest risks with Defence Forces support for gardaí to remove blockades if needed and opposition parties Sinn Féin and Aontu are pressing for the cuts to be extended further.