Robert Troy: Extends Fuel Duty Relief Until Oct 2026
Robert Troy moves a financial resolution to extend temporary reductions in excise rates on autodiesel and petrol from 31 August until 31 October 2026, and sets a graduated unwinding from 1 November. He explains the reasons for the extension, compares Irish pump prices with other European states, and outlines the estimated cost to the exchequer.
What was announced
Robert Troy set out that mineral oil tax will remain reduced on a VAT inclusive basis by 30 cent per litre for autodiesel and 25 cent per litre for petrol until the end of October 2026, and that a temporary reduction to the excise rate on marine gas oil will also be extended. He said a revised schedule for unwinding the temporary measures will begin on 1 November.
Why the government acted
Troy placed the decision in the context of heightened fuel prices driven by global events, noting recent fluctuations in wholesale oil and refined fuel markets and comparisons with higher European pump prices. He emphasised the need for flexible, real-time responses rather than decisions based on predictions.
Defending fiscal prudence
He defended the government’s record of intervening in crises, arguing that strong public finances and careful budgetary management give the capacity to support households and businesses. Troy warned against unrestrained spending calls from the opposition and highlighted the need to retain capacity to respond to future shocks.
Cost and next steps
The extension is estimated to cost the exchequer approximately €407 million from 1 September until the final restoration on 28 February 2027. Troy said this measure will be considered alongside an upcoming budget that will aim to assist people with cost-of-living pressures while protecting the economy.
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Thank you Caeann Comhairle and I move this resolution. This financial resolution provides an extension of the current temporary excise rates reductions on autodiesel and petrol from the 31st of August until the 31st of October 2026. This means that the rate of mineral oil tax will remain reduced on a VAT inclusive basis by 30 cent per litre for autodiesel and 25 cent per litre for petrol until the end of October. There's also been a temporary reduction to the excise rate applying to the marit gas oil. We're also acting to further extend the period of this reduction. This resolution introduces a revised schedule for the unwinding of these temporary measures on a graduated basis from the 1st of November onwards. Listening to some of the contributions from across the floor you would be forgiven to think that this was the introduction of new taxes, not an unwinding of temporary measures that were introduced. As you're all aware we are living through a period of exceptional uncertainty and exceptional measures have been taken not just by this government but by governments across the world in response to heightened fuel prices. Even today if you look at the price of fuel across Europe the price of a litre of petrol in Denmark is 2.45, Netherlands 2.35, Germany 2.25, Finland 2.18, France 2 euros and 7 cents. All a lot higher than what we have been able to do in this government in trying to keep the costs below the 2 euro mark. As elected public representatives we need to respond when and where is necessary while ensuring that we act in a way that is physically responsible. The government recognises the continued financial pressures facing households and businesses arising from heightened fuel prices as a result of the conflict in the Middle East. As a government we stated at the outset of the conflict that we would monitor the situation closely and reserve the right to adjust our response as required. And that is what we have done. Decisions have been taken in real time with as much data as information we have to hand, not based on predictions. And despite what the opposition may suggest or try to insinuate this government has a strong and unwavering record of supporting our citizens through times of crisis and uncertainty. We did so in response to Brexit, throughout the Covid pandemic, following Russia's invasion of Ukraine and we will continue to do so as we navigate the ongoing and ever-changing situation in the Middle East. As recent developments highlight the situation remains fluid. The wholesale price of oil and importantly of refined fuels like petrol and diesel continue to fluctuate as we can see this reflected at the pumps. I have previously said there will no doubt be further ebbs and flows before a new equilibrium is reached in global oil markets. Although there has been a slight easing in recent days, oil prices remain elevated and the situation remains highly uncertain. That is why we must continue to be flexible in our response. Government will continue to support people when they need it but that support must be delivered in a way that is prudent, sustainable and responsible. It is precisely because of the careful management of our economy by this government and successive Ministers for Finance that we have the physical breeding room to intervene when crises arise and protect households from the worst of the impact. Shielding people from the worst effects of inflation and external economic shocks requires strong public finances. It is the prudent economic management that gives government the capacity to step in when necessary, not the opposition's continuous calls for increasing spending from what they appear to believe is a bottomless pot of money. The question for the opposition is a simple one. How long would the physical breeding room be if this government had created last if we accepted the continuous and never-ending calls they made for additional spending? Our responsibility is not exclusively to respond to the pressures of today but to ensure we retain the capacity to respond to the crises and challenges of tomorrow. Solid budgetary management in recent years means that we have the capacity to respond in a timely way to help with this energy price shock but this does come at a significant good cost to the exchequer. The estimated cost to the exchequer from 1 September until the final restoration on 28 February 2027 as regards the extension of the temporary changes is approximately €407 million. This has obviously been introduced today but as previous speakers have said and the Tanisha has said we are determined as we frame the budget which will be happening in a number of weeks that this budget will take decisive interventions and that will be framed around further assisting people with the cost of living including to reward work, reduce costs and to protect our economy. Thank you.
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