GOVERNMENT WILL CONSIDER whether to extend the fuel excise cuts on petrol and diesel in the next two weeks, Tánaiste Simon Harris confirmed today.
Excise on petrol was reduced by 10 cent, bringing the total reduction on petrol to 27 cent (VAT inclusive), while excise on diesel was also reduced by 10 cent bringing the total reduction on diesel to 32 cent.
Marked gas oil (green diesel) was cut by 2.4 cent, bringing the total reduction on green diesel to 7.4 cent.
The emergency measures, introduced in March at the outset of the conflict in the Middle East, are due to end at the end of July.
Speaking to reporters on his way into the National Economic Forum in Dublin Castle, the Tánaiste said the peace agreement between the US and Iran is a “positive economic development”.
Asked if it changes the approach the government might take with excise tax cuts, Harris said the peace deal is certainly “a positive economic boost”, but warned it might not have an impact on energy costs in the short-term, given the significant damage to energy infrastructure.
Asked if the government will therefore extend the excise cuts on fuel, the Tánaiste said the situation remains very fluid.
Government keeping close eye on oil markets
“We’ve seen time and time again how volatile the oil markets can be when an announcement is made, it comes to pass, prices go down, and announcements are made, and it doesn’t come to pass, and things go back up. So, government is keeping a very close eye on all of this,” he added.
Harris said the matter will be considered in a “couple of weeks’ time”, stating that he believes that is a prudent and sensible thing to do.
These measures are in place until the end of July, so there is still ample time to consider what the most appropriate thing to do is, said Harris.
The Taoiseach also welcomed the announcement of an agreement between Iran and United States in respect to the Middle East telling the media it is an opportunity the world needs to grasp to move into a new era.
“There simply has been too much war and conflict in the world over the last decade that has had a very negative impact on people’s lives,” he said.
Budget 2027 tax package and childcare supports
Asked about the upcoming budget in October, Public Expenditure Minister Jack Chambers said that a tax package will be a “really important priority” in budget 2027.
The Tánaiste and minister for finance told the conference today that successive budgets have increased the point at which workers enter the higher rate of income tax, helping people keep more of what they earn.
“As we prepare Budget 2027, we will consider further increases in that threshold as a practical way of ensuring wage growth translates into higher take-home pay,” he said.
Chambers has also indicated that childcare will be a key pillar in the budget this year.
Micheál Martin said the government will take actions to reduce costs for families, something Harris confirmed to The Journal last week when speaking on The Candidate podcast.
The Taoiseach said there is also a need reduce fees and increase places.