Fuel excise cuts extended to June next year

Minister for Finance Simon Harris has confirmed that the Government will extend the temporary reduced fuel excise rates until the end of February 2027.

The cuts, which were first introduced in April, have resulted in a 32c lowering of the price of a litre of diesel while 27c was shaved off the cost per litre of petrol.

They had been due to be restored in November, but Mr Harris said that the Government will begin a "gradual and responsible" restoration of excise in four phases, with a full restoration not occurring until the end of June 2027.

The Minister also announced the extension of the reduced NORA levy until the end of the year as well as an extension to the enhanced Diesel Rebate Scheme until the end of this year.

The Department of Finance is also engaging with the European Commission to establish a more favourable tax treatment for Hydrotreated Vegetable Oil, or HVO, to assist people transitioning to a greener alternative.

The Minister said the extension of these measures will continue to lower inflation, reduce the cost of doing business and keep more money in people's pockets.

Carbon tax on home heating oil and gas is being reduced and will not increase again in the lifetime of this Government.

Mr Harris also confirmed that the rate of carbon tax on both home heating oil (kerosene) and natural gas will be reduced, rather than increased, as was scheduled.

Rates on these products were scheduled to increase twice between now and May 2027, from €63.50 per tonne of CO2 today to €78.50 per tonne by 1 May 2027.

Instead, they will both be reduced to €48.50 per tonne.