The Government “will not hesitate” to introduce further measures on energy costs if required, a minister has said, as Cabinet approved supports worth €250 million, reports Breaking News.
The Coalition agreed on a temporary reduction in excise duty on motor fuels, an expansion of the diesel rebate scheme for hauliers and bus operators, and an extension of the fuel allowance in response to rising fuel prices following the war in the Gulf, reports Breaking News.
These measures include short-term cuts to mineral oil tax rates on petrol, auto diesel and marked gas oil (green diesel), which are set to take effect from midnight on Tuesday until the end of May, pending Dáil approval.
The reductions amount to 15 cent per litre for petrol, 20 cent for diesel and three cent for green diesel, reports Breaking News.
In addition, the National Oil Reserves Agency levy will be reduced from two cent per litre for a period of two months.
Taken together, these adjustments are expected to lower prices by 22 cent per litre for diesel and 17 cent for petrol, with the Government anticipating that these changes will be reflected at fuel pumps within hours, reports Breaking News.
Meanwhile, the maximum repayment under the diesel rebate scheme for hauliers and bus operators will rise by 7.5 cent to 12 cent per litre, backdated to the beginning of the year and running until the end of June.
The fuel allowance will also be extended by four additional weeks, meaning 470,000 households will receive an extra €38 per week, reports Breaking News.
Senior Government sources indicated that further measures could be introduced later in the year if required.
Speaking at a press conference, Taoiseach Micheál Martin described the €250 million package as “targeted”, “temporary” and “affordable”.
He said the measures are intended to ease the burden of rising prices on those most affected and vulnerable, reports Breaking News.
Mr Martin said: “All of the measures we’re introducing today are timebound and subject to ongoing review based on market developments.”
He added: “The truth is, we do not know how this war will unfold – no one does.
“But our hope and our contribution to the international debate is for de-escalation and for peace and for the war to end,” reports Breaking News.
The Taoiseach said it was important to preserve resources for next year’s budget, noting there are “limits to what Government can do” and that it cannot “compensate everybody”.
He warned that even a short conflict could still result in higher inflation and slower economic growth, reports Breaking News.
Minister of State Sean Canney, representing Independent members in Government, said: “We will not hesitate to take action again if circumstances change.”
When asked about the possibility of fuel rationing, the Taoiseach said that “measures of that kind” are not currently being considered, reports Breaking News.
Mr Canney also suggested that driving at lower speeds could help save both money and lives.
When questioned about encouraging more remote working, Mr Martin said the situation remains under review but no such advice is currently being issued, reports Breaking News.
He added that Ireland already has a “significant degree of remote working” in place.
Mr Martin said the Government must also plan ahead for the winter period and hinted that a different strategy could be introduced in the autumn, reports Breaking News.
Responding to questions about planned carbon tax increases due on 1 May, both the Taoiseach and Tánaiste defended the policy, saying it funds retrofitting programmes that help reduce energy bills.
Tánaiste Simon Harris said discussions with industry indicate that prices should fall at the “large majority” of service stations within hours, reports Breaking News.
Earlier, he also did not rule out additional steps aimed at reducing fuel consumption.
Asked whether measures such as encouraging working from home had been discussed, Mr Harris said: “I think the immediate priority of Government was the fiscal measures that we can take to assist people. We will, I think in the time ahead, have to continue to look at what we can do around supply and demand issues, should the conflict continue,” reports Breaking News.
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