Leitrim comment on new measures brought in to tackle soaring fuel costs

This week, in response to significant increases in global energy prices driven by the ongoing conflict in the Middle East, the Government will introduce a temporary reduction in excise duties on fuels.

Petrol, auto diesel, and marked gas oil (MGO) will see reductions of 15 cent, 20 cent, and 3 cent per litre respectively until 31 May 2026, at an estimated cost of €150 million.

The measures will reduce the cost of filling a standard 60-litre tank by approximately €9 for petrol and €12 for diesel. When combined with the reduction in the National Oil Reserve Agency (NORA) levy, savings will exceed €10 for petrol and €13 for diesel.

In addition, the Government will increase the Diesel Rebate Scheme to 12 cent per litre (from 7.5 cent), effective retrospectively from 1 January 2026 until 30 June 2026, supporting hauliers and passenger transport operators. It will also reduce the NORA levy by 2 cent per litre for a two-month period, provide additional fuel allowance payments to support vulnerable households facing rising home heating costs, at a cost of €70 million.

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Sligo/Leitrim Minister Marian Harkin said: “These measures are designed to assist both rural and urban communities, ensuring that those who rely on transport—whether for work, farming, or daily life—are supported. Importantly, we are also protecting the most vulnerable through additional fuel allowance payments.”

The Government also noted the wider economic benefits of the package, including reducing cost pressures on industry and improving competitiveness. The measures are expected to help address fuel price differentials with Northern Ireland, which have contributed to cross-border fuel purchasing and indeed this is especially important in border regions.

The National Energy Affordability Taskforce will continue to monitor developments and assess further actions if required. The Taskforce is currently working towards a National Energy Affordability Action Plan, due for Government approval by July.

Minister Harkin concluded: “This is a balanced, targeted and temporary package that supports households, strengthens our economy, and ensures we remain responsive to evolving global challenges.”

The total estimated cost to the Exchequer of the measures is approximately €230 million.