Ireland’s coalition leaders are expected to meet to decide whether to begin phasing out temporary fuel excise cuts introduced earlier this year following nationwide protests over rising fuel costs.
Taoiseach Micheál Martin, Tánaiste Simon Harris and Independent group leader Seán Canney are due to discuss proposals to gradually withdraw the tax reductions on petrol and diesel over the coming months.
The current excise cuts, amounting to 32 cents per litre on diesel and 27 cents per litre on petrol, are scheduled to expire at the end of July. Government sources indicate the reductions could be withdrawn in three stages between August 1 and Budget Day in October, rather than ending all at once.
The tax relief measures were introduced in April after demonstrations led by farmers, hauliers and members of the agricultural sector. Protesters had voiced concerns over sharply rising fuel prices linked to the conflict involving the United States, Israel and Iran, which pushed global oil prices higher.
Since then, international oil prices have eased and returned to levels seen before the outbreak of the conflict, prompting the government to review whether the temporary supports are still necessary.
Any decision to remove the tax cuts is expected to face strong political resistance.
Opposition parties have argued that households and businesses are still struggling with the cost of living and that ending the fuel supports would place additional financial pressure on motorists and industries that rely heavily on transport.
The issue is set to be debated in the Dáil this week, with opposition lawmakers seeking to extend the excise reductions beyond their current expiry date.
Sinn Féin has called on the government to maintain the cuts, arguing that they should not be withdrawn while the Dáil is preparing for its summer recess. The party says motorists and businesses continue to face significant financial challenges despite lower international oil prices.
Meanwhile, Aontú is expected to table a motion on Wednesday urging the government to abandon plans to phase out the reductions. The party argues that removing the relief during an ongoing cost-of-living crisis would increase pressure on families, commuters and businesses already dealing with high living expenses.
The coalition is expected to announce its decision after the meeting, with any approved changes likely to take effect from the beginning of August. The outcome will determine whether motorists continue to receive fuel tax relief over the coming months or begin paying gradually higher prices at filling stations ahead of the government’s October budget.
