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Government Considers Keeping Fuel Tax Relief In Place Until Spring

By Katie Monks
24/09/2026
Est. Reading: 2 minutes

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The Government is considering keeping the fuel tax relief until next spring.

The reductions were first introduced in April with the original plan to phase out by November, however the Government are now considering extending the cuts until late February or early March.

According to RTE, Tánaiste Simon Harris and Minister for Public Expenditure Jack Chambers have indicated that they will remain in place until spring.

The reductions knocked 32 cents per litre off diesel and 27 cents off petrol.

Additionally, a €5 weekly increase to the fuel allowance is reportedly being considered.

The payment currently stands at €38 a week and runs from late September through April.

Minister Chambers dropped a strong hint during Leaders' Questions that petrol and diesel excise cuts will remain in place under Budget 2027.

He pledged that the package would provide targeted relief for working families and address the rising cost of home heating oil.

"We've been clear that is a specific consideration in our tax policy measures, and that will be considered as well as the deferral of excise on petrol and diesel," Chambers said.

Taoiseach Micheál Martin said to reporters in New York that the Government cannot do everything for everybody in the Budget.

When asked to guarantee that no one would be worse off after the Budget, he admitted he could offer no "cast iron guarantees."

"We are under severe pressure internationally. We can't predict where the global situation will go. I am aware yesterday that there would have been a series of talks at the UN in respect of the Iranian issue and the US. And indeed, listening to people at Ukraine/Russia, one always hopes that the situation can improve with negotiations," Martin said.

"Then we’re looking at fuel, additionally to those budget measures with a view to the next six to eight months and a series of measures there to alleviate the pressure on people and that could be a combination of measures," the Taoiseach continued.

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