Government shelves planned 11c diesel and 10c petrol excise increases

Cabinet will formally approve the move before TDs vote on a financial resolution to delay the planned fuel excise increases

Plans to add 11c a litre to diesel and 10c a litre to petrol from September 1 have now been shelved. File picture: PA

The Government is set to recall the Dáil as plans to increase excise duty on fuel in September and October have been put on ice.

Plans to add 11c a litre to diesel and 10c a litre to petrol from September 1 have now been shelved, with a Government spokesperson confirming the move.

“In June the Government announced an extension of the temporary reductions to fuel excise and the National Oil Reserves Agency Levy (NORA) and to avoid any cliff edge removal of supports, it set out a pathway to gradually restore rates to pre-reduction levels, starting from September 1,” a Government spokesperson said.

“However, it is clear that in the intervening period there has been a change in the global situation and as a consequence the cost of petrol and diesel for consumers.

“The Taoiseach, Tánaiste and Minister of State Seán Canney have kept in close contact in recent days and weeks and this morning agreed that the planned increases on September 1 and October 1 will not now go ahead.” 

Dáil to be recalled to delay fuel hikes 

The spokesperson said the next steps will be agreed next week, with Cabinet set to meet incorporeally to formally sign off on the move.

The Dáil will then be recalled, with TDs to vote on a financial resolution to give effect to the delay in excise hikes.

It comes a day after enterprise minister Peter Burke said a Dáil recall could not be ruled out to stop the hikes, and hours after Sinn Féin leader Mary Lou McDonald wrote to the Government calling for the increase to be scrapped.

The Government spokesperson said the most significant economic intervention would be de-escalation in the Middle East, but that the Coalition would be “agile and rule nothing out”.

“Work is also ongoing in relation to the Budget on October 6,” they added.

“The Government has been clear there will be decisive interventions in the Budget that will be framed around assisting people with the cost of living including to reward work, reduce costs, and protect the economy.”