Government excise duty cuts to reduce petrol and diesel cost by 15 to 20c 

Pump prices at Circle K Nutgrove filling station Rathfarnham Dublin 14 as fuel costs are set to increase even more due to the conflict between Russia and Ukraine. Picture Colin Keegan/ Collins Dublin

The Government will reduce the cost of petrol by between 15 and 20 cent tomorrow in a move to tackle rising prices.

The move has been called a "mini budget" by sources and will see a straight cut in excise rates. 

It will mean that diesel prices come down by 15c a litre and unleaded by 20c.

The difference is to take account of the levels allowed under the Diesel Rebate Scheme in EU law, sources said.

The reduction in excise duty will kick in from midnight Wednesday.

There will be an incorporeal cabinet in the morning, followed by a press conference at 11am with Ministers Paschal Donohoe and Eamon Ryan.

While work on excise will be ongoing overnight, fresh European Commission proposals are being assessed.

Then Finance Bill will progress through the Dáil, with any amendments from the Opposition.

Sources say it will be a reduction in cents per litre as opposed to percentage decrease.

There is some degree of urgency as any tax measure such as this requires a Dáil vote and it will be in recess next week, due to the St Patrick’s Day festivities.

At Leaders’ Questions in the Dáil, Sinn Féin called for a 25 cent per litre reduction at the petrol pumps and sought immediate action from government.

Meanwhile, hotel rooms, modular homes, defence forces accommodation as well as offers from the public will be deployed to house 100,000 Ukraine refugees, the Cabinet has heard.

Taoiseach Micheál Martin updated ministers as to the state of affairs on the ground in Ukraine and warned there is likely to be a “significant impact on Ireland” from the Russian invasion.

Ministers heard that a fourth round of EU sanctions is being prepared which will be developed further at an informal summit in Versailles this week. It will involve a travel ban and further freezing of assets of oligarchs. 

There is no question but that the war on Ukraine is going to increase further and has increased the escalation of fuel prices at the petrol pump, household costs and so on.

"The Government is acutely aware of this issue. We do not argue that the impacts on people are sustainable at the rate these increases are occurring. Russia's systemic role in energy supply will have significant impact on prices with implications for inflation and production costs. Pass-through price effects are going to be felt in other areas,” the Taoiseach added. 

The Cabinet agreed “temporary crisis measures” will need to be deployed to ensure we can readily accept the large numbers coming from Ukraine.

Ministers were told that more than 2,200 people have arrived in Ireland, 40% of whom are children. Two thirds of those who have arrived are currently staying with family members already here in Ireland with 640 people currently staying in hotels.

The Government is now meeting weekly and its Secretary-General Martin Fraser is chairing meetings of all Secretaries-General to make sure every Department works in a co-ordinated way on this crisis.

The key will be to move as fast as possible to deal with the numbers coming in daily.

Of the 2,200 people who have arrived, Cabinet heard that they will all have access to social protection, social welfare incomes and access to health and education supports.

“That work is under way. Therefore, a lot has been done in a very short space of time. 

"We have allocated €20 million in humanitarian supports to go through established agencies in the UN, including UNICEF, and the Irish Red Cross to deal with the crisis on the ground close to the borders by way of providing vital supplies,” Mr Martin said.

It has also emerged that British home secretary Priti Patel has contacted Justice Minister Helen McEntee. She raised concerns over Ukrainian refugees accepted into Ireland then making their way to the UK.

However, Ms McEntee made clear that Ireland has obligations in terms of accepting people from Ukraine because of its membership of the EU.

Ms McEntee “felt it needed to be communicated” to Ms Patel, Ireland’s responsibilities in relation to accepting people from Ukraine.

A Government spokesman said the call was “good and friendly.”

'We have an open border with Northern Ireland, that is not going to change'

While he said the two ministers are in regular contact, this call came following comments attributed to an unnamed UK minister appeared in the Daily Telegraph voicing concern that criminals could be allowed enter Britain having arrived through Ireland.

Officials in the Department of Justice and the Home Office are in daily contact, ministers heard.

Meanwhile, reports in the Daily Telegraph said the Common Travel Area meant Ukrainians who did not pass British security checks could reach the UK by travelling to Northern Ireland. It added that the UK government fears this will pose a “security” risk.

The Taoiseach said the border with Northern Ireland will not be closed.

“We have an open border with Northern Ireland, that is not going to change – be that for pandemic reasons or be that for refugee reasons,” he said.

We are not going to shut the border and the UK government will understand this in the same way as we understood it when it was coming the other way with the pandemic.

"The best way is not to shut a border but to ensure you share information. That gives confidence that the security issue can be addressed.” 

The Taoiseach also referenced contacts between Ms Patel and Ms McEntee over British concerns about Ukrainian refugees arriving in Ireland.

Mr Martin said Ms McEntee had “pointed out” to Ms Patel that Ireland was part of the EU-wide response to the crisis.

This meant acting with other European Union countries “in terms of waiving visa requirements as a humanitarian response.”

“That continues to be our position in respect of prioritising the humanitarian response, above and beyond anything else,” Mr Martin said.

Meanwhile, Britain’s dripping tap of Ukrainian admissions to the UK has been slammed by TDs at Leinster House.

Particular outrage has been expressed over an official leak to the Daily Telegraph about a fear that Ukrainian criminals could be admitted by Ireland’s open-door policy – and then travel freely to Britain under the Common Travel Area.

“I think it's disgraceful and there's a responsibility to actually do a lot more and for them to welcome people into their country,” said Jennifer Whitmore, the Social Democrats TD for Wicklow.

Transport Minister Eamon Ryan did not rule out a further package to tackle rising inflation, saying that the war breaking out in Ukraine “changed everything.”

Discussions with the Department of Finance to consider cuts to excise duty are ongoing.

However, the minister said that additional Government measures “won’t cushion the full blow” of rising prices.