Simon Harris says fuel crisis is 'worsening by the day'

Government's excise cuts being negated by higher prices caused by strikes on energy infrastructure

Simon Harris confirmed the Government is keeping further measures under review.

The current energy crisis is worse than the last three oil and gas crises combined and is “worsening by the day”, Tánaiste Simon Harris has warned.

While insisting that “no country will be immune” from the impacts of the ongoing war on Iran, the finance minister insisted that implementing rationing or travel restrictions are not under consideration.

The Government cut excise duties on petrol and diesel last week by 15c and 20c, respectively. Reductions to the NORA levy will see these cuts increased to 17c and 22c.

These cuts are being negated, however, by higher prices caused by strikes between Israel and Iran targeting energy infrastructure.

Speaking in Nenagh, Co Tipperary, Mr Harris confirmed the Government is keeping further measures under review.

However, he ruled out the prospect of travel restrictions or rationing fuel by sending the Defence Forces to garage forecourts, arguing Ireland is “not in that space”.

However, the finance minister also warned that a briefing from the International Energy Agency (IEA) in Brussels last week confirmed that the current difficulties caused by the war in the Middle East will get worse the longer the conflict continues.

The group said the “current energy crisis globally is larger” than the previous oil crises in 1973 and 1976 and the gas crisis of 2022 “combined and is ongoing and worsening by the day”.

“We're in a world now where the scale of the energy crisis is greater than the world has ever seen, and that's just a statement of fact, and is ongoing,” Mr Harris explained.

“If the conflict ends today […] the damage done to [energy] infrastructure would still take the best part of a year to repair, is the best estimate made available to us by the IEA.

“No matter what happens here, is going to be a challenge. It's only a matter of how grave and significant that challenge is.

“Obviously, all Governments around the world will, in the time ahead, have to prepare for a variety of scenarios. There are no supply concerns in Ireland today. There's no supply concerns in Europe today.” 

The Tánaiste said that while people are “trying to scenario play different situations”, the country is “nowhere near the point” of limiting people’s access to petrol and diesel.

He continued: “I'm not talking about today, I'm not talking about tomorrow, and I'm not talking about the next couple of weeks, but if this goes on and on and on, and bear in mind, it's a war that is seeing energy supplies destroyed, that does have real consequences in terms of global supplies.

“No country is immune from that.” 

Mr Harris once again ruled out changing rules around people working from home. He said employers “generally exercise a fair degree of common sense” on the matter.

When asked if public transport could be made free to cushion people from rising fuel costs, Mr Harris said it would be “foolish” to rule any measure in or out.