WEALTH March 24, 2026 0 Comments

Government Fuel Measures Spark Unexpected Boom—Is This the Game-Changer Industries Have Been Waiting For?

Ever noticed how fuel prices seem to have a mind of their own—skyrocketing just when you least expect it? Well, with diesel hitting over €2.10 per liter and petrol creeping close to €2 amid the turmoil in the Middle East, many of us are feeling the pinch at the pump like never before. But here’s a twist worth paying attention to: the government’s stepping in with a hefty €240 million in measures aimed at easing the burden on consumers and hauliers alike. From slashing mineral oil taxes and boosting diesel rebates to extending fuel allowances, they’re not just tweaking numbers—they’re trying to shield families and businesses from this relentless surge. Still, as hopeful as these moves sound, the question remains: will these short-term fixes be enough to fuel lasting relief, or just a temporary pit stop on a rocky road ahead? Let’s dive in. LEARN MORE

Businesses and commentators have reacted positively to government measures to reduce fuel prices for consumers and hauliers worth around €240m.

The price of diesel has risen to more than €2.10 per litres at some filling stations while petrol is close to €2, having risen substantially since the conflict in the Middle East began.

From midnight tonight, the rates of Mineral Oil Tax applying to petrol, diesel and marked gas oil (MGO) will be reduced on a VAT inclusive basis.

The rate of MOT will be lowered by 15 cent per lite for petrol, 20 cent per litre for auto diesel and three cent per litre for MGO until the end of May.

The government will also increase the maximum repayment allowable under the Diesel Rebate Scheme from 7.5 cent to 12 cent per lite of diesel on purchases made during the first six months of the year.

Additionally, the National Oil Reserves Agency (NORA) levy will be reduced from two cent per litre to a nominal amount for a period of two months.

Fuel allowance will also be extended by an additional four weeks, meaning that the 470,000 eligible households will receive an extra €152 of €38 per week.

“Today’s measures will help shield households and businesses from the recent unprecedented hikes in fuel prices,” said Taoiseach Micheál Martin.

“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.

“We are continuing to monitor the situation and will respond accordingly as the need arises.”

In reaction, Ibec senior energy policy executive Conor Minogue said it was positive to see the government respond so quickly to the current oil crisis.

“The emergency measures announced today like the excise duty relief, the diesel rebate scheme, and increases to the fuel allowances will provide meaningful relief for many businesses and households,” he continued.

“However, businesses that own and operate their own freight fleets will be frustrated that they cannot access the new rebate scheme and a workaround for this needs to be found. These company-owned freight vehicles make up a significant share of the domestic freight fleet.”

Chambers Ireland was more tentative in its praise, believing that many businesses will remain exposed to significant cost pressures.

“The introduction of swift, short-term measures that are targeted at the sectors and individuals most vulnerable to fuel price inflation are proportionate and should give some relief to those affected,” said CEO Ian Talbot.

“Chambers Ireland have consistently cautioned that high energy prices have damaging consequences for businesses, the competitiveness of the Irish and European economies, and the labour market.

“Ireland’s vulnerability to global energy shocks emphasises the need for accelerated delivery of domestic renewable energy projects and robust public transport networks.

“Energy security and sustainable transport should be strategic ongoing priorities and not just points of reference during times of geopolitical instability.”

Simon MacAllister, partner and co-head of geopolitical strategy at EY Ireland, said the measures would support hauliers and households and protect disposable income.

“Over the past number of weeks, we have seen significant volatility in global energy markets, volatility which is expected to continue due to the impact of recent developments on energy production, storage and transportation,” said MacAllister.

Fuel — Taoiseach Micheál Martin. (Pic: Leon Farrell/© RollingNews.ie)

“We are also seeing significant second‑order impacts on oil-and-gas‑derived products such as urea, helium and sulphur, which are critical to everything from high‑tech chip manufacturing through to agriculture.”

MacAllister said the new EU-Australia trade deal would also help, but that the crisis reinforced the importance of scenario planning and flexibility in changing geopolitical circumstances.

(Pic: Getty Images)