Following the outbreak of the war in Iran, the Government introduced excise cuts in mid-April to reduce the excise on diesel by 32c, and petrol by 27c. This included a reduction of the Nora Levy.

The current cuts are due to expire on July 31. Taking questions in the Dáil, Mr Harris said that the Government accepts that there cannot be a “cliff edge” and a decision on excise cuts continuing, and the way they continue, will be taken in the coming days.

Responding to Sinn Féin TD Pearse Doherty and Fianna Fáil TD John Connolly, the finance minister said that there will have to be a balance.

Mr Doherty said that people would be “aghast” that petrol prices would rise again to over €2 on August 1.

“We do have to get the balance right here between solid budgetary management, which gives us an ability to respond in a timely manner, and also making sure that people don't see some sort of immediate cliff edge at the end of the July date,” the Tánaiste said.

“I don't believe it's likely there's going to be some sort of cliff edge where everything can return to as it was before the packages.

“I think we'll have to think this through. I think we'll have to see what's an appropriate and proportionate response beyond July 31, and Government will make this decision in the coming days.” 

The Tánaiste noted that legislation is currently progressing through the Dáil to give effect to the cuts put in place in April and suggested that this legislation can be amended by the Government to extend or change the cuts.

In response to Mr Connolly, the Tánaiste noted that petrol and diesel prices have fallen, and in some cases diesel prices are now lower than petrol.

“I don't think it's possible for somebody to absorb the full 32c increase,” he continued.

“I get that point, but I also have to balance that with the fact that you, on behalf of your constituents, and all of us on behalf of his, will be looking for things to be done in the budget too.

“I can’t ignore the fact that the price of oil is now falling, can't ignore the fact that the state of our news is currently open, can't ignore the cost that I actually saw on the way in today, I saw diesel is now below the cost of petrol.

“The situation is different factually to when we brought in the original package. We need to work our way through that in the coming day.”