Taoiseach calls for lower energy use as Government unveils €250m fuel cost measures

Government unveils €250m support package while Taoiseach calls for reduced consumption and warns retailers on passing on cuts

Micheál Martin confirmed that cutting speed limits 'does impact on energy efficiency' and said the issue is 'being kept under review'. File picture

Taoiseach Micheál Martin has urged people to examine their energy consumption amid rising prices, encouraging greater use of public transport, improved home efficiency, and reduced driving speeds.

He confirmed that cutting speed limits “does impact on energy efficiency” and said the issue is “being kept under review”.

In a warning to the fuel industry, the Taoiseach said that if excise cuts are not passed on to hard-pressed consumers, it could influence decisions on whether further measures are introduced.

The Government announced a range of measures on Tuesday to address spiralling fuel costs caused by the US and Israeli war on Iran.

From midnight, excise on petrol will fall by 15c per litre, with diesel excise cut by 20c. These reductions will remain in place until May 31.

The Nora levy will be reduced from 2c to zero next week once legislation is passed, bringing the total reduction in levies on petrol and diesel to 17c and 22c respectively.

The haulage sector will benefit from the excise cuts, as well as an enhanced diesel rebate scheme, which will increase from 7.5c to 12c. The increase will be backdated to January and remain in place until the end of June.

The fuel allowance season will be extended for the month of April, benefiting 420,000 households.

Announcing the measures, Mr Martin said the Government was limited in what it could do and had to deploy “proportionate, sensible, and sustainable” measures that are “targeted and temporary”. 

The total cost of the package will be €250m.

The Taoiseach also encouraged people to examine how they can become more energy efficient and cut costs further.

“It's also an opportunity to reflect on our energy use and to make sure that we're each doing all that we can to make our homes as energy efficient as possible, using public transport where we can, and generally being mindful of our energy use,” he said.

A new report from the International Energy Agency (IEA) last week stated that lowering motorway speed limits by at least 10km/h cuts fuel consumption.

When asked if the Government would mandate lower speeds, the Taoiseach said it was something people should take into consideration.

He confirmed that both lower speeds and increased remote working remain under review.

“We already have a significant degree of remote working in our economy, particularly in our public service,” he said.

“On the road speed limit, if you reduce them, it does impact on energy efficiency.

“Those are matters that are being kept under review.”

Junior transport minister Sean Canney said speed limits were reduced last year from 80km/h to 60km/h, and those driving at the slower limits “are saving energy”.

He added: “The message is, drive slowly, drive safely. You will both save yourself money and also save lives.”

The Taoiseach also warned that measures will have to be kept under review as there are “limits to what Government can do” before it impacts other budgetary decisions.

Mr Martin said that if lower prices at the pumps are not passed on to consumers, this could influence decisions on whether the excise cuts are extended beyond the end of May.

However, he ruled out the prospect of fuel rationing.

“Keeping it under review means also that there may be different approaches come the autumn and come the next winter,” the Taoiseach explained.

“On the point about [retailers] passing [excise duty cuts] on [to customers], that will be a factor.

“If it's not passed on, then that has implications and consequences as well in terms of subsequent decisions that the Government might take.

“But I know [transport] Minister [Darragh] O’Brien has been in touch [with fuel representatives]. We do expect, obviously, that these decreases will follow through at the pump.” 

Tánaiste Simon Harris said that “it's very clear people were very quick to put up the prices” at the pumps, and they need to “put them down as quickly”.