Government says fuel tax hike cancelled

The decision to halt the planned rise in fuel excise duty for September and October, offering a short‑term reprieve for motorists facing high pump prices.

Government shelves planned fuel tax hikes

A statement released by the Government said the June extension of temporary cuts to the fuel levy and the National Oil Reserves Agency Levy (NORA) would have been followed by a gradual return to pre‑reduction rates starting 1 September.

The document added that a shift in the global situation altered the cost outlook for petrol and diesel, prompting officials to pause the scheduled increases.

According to the announcement, the Taoiseach, the Tánaiste and Minister of State Seán Canney kept close contact over the past weeks and agreed that the hikes slated for 1 September and 1 October would not proceed.

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The earlier cuts, introduced in response to surging fuel costs and public protests, reduced the levy on diesel by 32 cent per litre and on petrol by 27 cent per litre, inclusive of VAT.

Those reductions were originally set to be reversed on 31 July but were extended while the government evaluated market conditions.

Political pressure and future of fuel tax cuts

Opposition leader Mary Lou McDonald urged Taoiseach Micheál Martin to recall the Dáil next week so legislators could vote on delaying the phased reversal of the cuts.

In a letter sent overnight, she argued that motorists continued to face raised costs and asked that any further adjustments be postponed until after the October Budget.

The Automobile Association reported the average pump price at 183.66 cent per litre for petrol and 191.56 cent for diesel, both well above levels recorded before the Middle East conflict began.

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Under the June plan, the first increase on 1 September would have added 9 cent per litre to petrol and 10 cent to diesel. A second rise of 8 cent for each fuel was scheduled for 1 October, followed by further steps in November and December.

Motorists avoid a combined 17 cent increase.

The cancellation leaves the timetable for the remaining scheduled hikes uncertain.

The November and December steps—5 cent for petrol and 7 cent for diesel in each month—remain on the table, but officials have not indicated when or if they will be implemented.