Last week, the Government agreed a new package of fuel measures to support the transport, farming and fisheries sectors which include reductions in excise duty on diesel, petrol and marked gas oil. The reductions will take effect from midnight, Tuesday 14 April 2026 and run until 31 July 2026. The measures are in addition to the €250 million in targeted supports previously allocated to assist those experiencing real and immediate financial pressure.
As part of the ongoing engagement with the European Commission, the measures announced by Government include the following:
- Excise on diesel to be reduced by a further 10 cent (VAT inclusive), bringing the total reduction on diesel to 32 cent (VAT inclusive),
- Excise on petrol to be reduced by a further 10 cent (VAT inclusive), bringing the total reduction on petrol to 27 cent (VAT inclusive),
- Excise on marked gas oil (green diesel) to be reduced by a further 2.4 cent (VAT inclusive), bringing the total reduction on green diesel to 7.4 cent (VAT inclusive),
- the overall reductions include the already announced NORA levy reduction, and
- the planned increase in carbon tax, scheduled for May 1st, will be deferred until the Budget. This will impact green diesel and non-propellant fuels such as kerosene heating oil, natural gas and solid fuels.
The Government plans to establish a new Road Transporters Support Scheme (RTSS) to support the haulage and coach sector. In addition, a comprehensive €100 million Fuel Subsidy Support Scheme was announced to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs.
Following the announcement, Revenue updated its Excise Duty guidance on Energy Products and Electricity Taxes to reflect these changes. The guidance on the relief for increase in carbon tax on farm diesel has also been revised to reflect an extension of relevant existing rates and to include a step-by-step guide on how claim relief for carbon tax on farm diesel under section 664A TCA 1997.
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