Petrol and diesel prices will drop at pumps from midnight tonight.
Minister for Finance, Paschal Donohoe TD, has confirmed a temporary reduction in the excise duties charged on petrol, diesel and marked gas oil.
Excise duty will reduce by 20 cent per litre of petrol and 15 cent per litre of diesel.
There will also be a reduction of 2 cent in the excise duty charged on marked gas oil.
These reductions will remain in place until August 31st, 2022.
These temporary reductions in excise are expected to reduce the cost of a fill of a 60-litre tank by €12 for petrol and €9 for diesel.
The news comes following a Cabinet meeting earlier this morning (Wednesday, March 9th, 2022).
A financial resolution will be presented to the Dáil this evening.
Petrol and diesel prices
Speaking following the announcement, Minister Donohoe said:
“We have all witnessed the significant increase in energy costs in recent weeks, with prices at the pumps rising to record levels.”
“This comes on top of the increases in gas and electricity prices that many are facing.”
He said the government recognised the challenges of rising prices last October in Budget 2022. It “responded back to these challenges” by introducing a package of tax and social welfare measures worth over €1 billion.
Furthermore, last month, the government agreed a package of €505m. This included the €200 energy credit and a lump sum payment of €125 for fuel allowance recipients.
The minister stated that excise duty is an “important” revenue stream for the government and collected over €5.8billion last year, with over €2bn of that coming from fuel taxes.
He said the measure he announced today would reduce this by €320million.
“It is important that we are clear – the Government is acting now with this excise measure, to respond to the price rises we have seen to date, but also in anticipation of the further price rises we expect to see over the short and medium-term.”
“The causes of these price pressures are not within our control. The government has limited resources and has responded to help to ease the impact of these price increases, but we cannot cushion citizens and businesses from the entire impact.”