Government to decide new plan for fuel prices later this week

The Government could simply move the timeline again, reinstating the higher excise rates for petrol and diesel from later this year or come to a more permanent solution in October's budget. 

he Government previously announced that an excise cut of 32c on a litre of diesel and 27c for petrol was due to be phased out from September 1.

The Government will later this week decide on when to roll back fuel supports.

Planned rollbacks for September and October were delayed last week, with the Dáil set to sit later this week to pass a financial resolution to allow for the new plan.

Government sources said an incorporeal Cabinet meeting will be held on Thursday to decide next steps after the delay, prompted by high oil prices linked to the ongoing US war with Iran. Measures introduced earlier this year had been due to expire on July 31, but high prices moved this to September.

The Government previously announced that an excise cut of 32c on a litre of diesel and 27c for petrol was due to be phased out from September 1. Plans to add 10c a litre to diesel and 9c a litre to petrol from September 1 have now been shelved, with a Government spokesperson confirming the move.

Petrol is currently being sold at an average of €1.83 per litre, while diesel is at €1.93, according to the AA.

“In June, the Government announced an extension of the temporary reductions to fuel excise and the national oil reserves agency levy 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.

Government sources said the Government could simply move the timeline again, reinstating the higher excise rates from later this year or come to a more permanent solution in October's budget. 

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However, they said that the initial timing for the phasing-out of the excise cut — which came as part of €750m in industry supports and cost-of-living measures — was devised when the outlook over the Middle East conflict looked more positive.

TDs will gather in Leinster House for a single day to vote on a financial resolution to delay the excise increases, with ceann comhairle Verona Murphy summoning them in a letter issued on Friday evening.