The Irish Government has agreed a package of measures to try to alleviate the impact of the spike in fuel and energy prices since the combined US and Israeli attacks on Iran. Iran's response to these attacks has severely curtailed shipments of oil from the Persian Gulf, while Iran's own oil-producing infrastructure has been affected too.
What is the package and what happens next?
Possibly the most significant part of the Government's package is a cut to fuel excise duty, which should reverse at least some of the vast increases seen in the per-litre price of both petrol and diesel.
Excise duty on diesel - the price of which has been more heavily affected - will be cut by 20 per cent, while the duty on petrol will be cut by 15 per cent from midnight tonight, 24 March 2026. These cuts are expected to stay in place until the end of May 2026.
How much will petrol and diesel prices fall by?
It's expected that the cost of diesel will fall by 22c per litre, while the cost of petrol will fall by around 17c per litre. There should be a further 2c per litre cut in prices later in the week as the Government is planning to rush through legislation to change the charge on each litre of fuel that goes to NORA, the National Oil Reserve Agency.
Will that reverse the price rises?
Not entirely, no. Petrol had fallen to as low as €1.60 per litre in January, while diesel was as cheap as €1.70 for a while. These cuts in excise duty should return petrol to around €1.85 per litre, and diesel to around €2.00 per litre, all things being equal.
Meanwhile, the price of a barrel of crude oil remains stubbornly high, with Brent Crude futures - the price index that decides Irish pump prices - hovering at $99 per barrel, which is not quite at the peak seen in the aftermath of Russia's invasion of Ukraine in 2022, but not far off it. It's possible that the more conciliatory tone coming from Washington in the past 24 hours will take some of the heat out of both the war and the oil market, but that very much remains to be seen.
What other measures are being taken?
The Government is also going to reduce the VAT-inclusive cost of green diesel, and will increase the amount available to companies using the diesel rebate scheme. The NORA cut will also reduce the cost of home heating oil somewhat. There will also be a rebate programme for the haulage industry, and an extra four weeks of social welfare heating payments for those who qualify.
When will prices come back down?
We simply don't know - it all depends on the decision taken in Washington, Tel Aviv, and Tehran. If this war drags on, then the prices of fuel may not come down for a long time indeed, and a ramping up of the crisis could easily erase any of the Irish Government's efforts.
In the meantime, the Taoiseach, Micheál Martin, said: "We are never going to be in a position, where we will, as a Government, be able to compensate everyone for the damaging impacts of the war on the energy markets, but what we can do is try and ease the pressure. There are limits to what governments can do in response to a crisis of this kind and we want to ensure what we do is sustainable.”