The Government this week announced an extension of the temporary reductions to fuel excise and the National Oil Reserves Agency Levy (NORA). These temporary reductions were due to expire on 31 July and will now be extended in full until 31 August with a phased restoration to pre-reduction levels taking place between September and December. In addition to these measures, the temporary enhancement to the Diesel Rebate Scheme for hauliers and road transport operators will be extended until 30 September 2026.

The announcement was made the day before the publication of a report by the Irish Fiscal Advisory Authority which assessed the long-term fiscal impacts of climate policy. The report, titled The Hidden Cost of Inaction, sets out why a failed climate transition will prove costly to the Irish economy, potentially costing the Exchequer up to €13 billion a year by 2050. The Government’s budgetary watchdog singled out the €5 billion spent in recent years on temporary fuel and energy supports, stating that “[t]hese amounts could have instead funded more lasting alternatives, like deep retrofits for over 110,000 homes or enhanced €10,000 subsidies for half a million electric vehicles”. It advised Ireland to take action to fund measures that support the transition and bring broader benefits to Irish society, and to incur costs to electrify transport, upgrade buildings, and decarbonise rather that risks facing “massive” costs for missing legally binding EU targets.

The Climate Change Advisory Council has also warned that the recent temporary emergency responses to fuel price increases have not been sufficiently targeted. It recommended that the Government instead introduce targeted supports to increase EV uptake among lower income households, accelerate the expansion of EV charging infrastructure, invest in the electrification of cars, buses, school transport and commercial fleets, increase funding for public transport and make Ireland’s transport network more resilient to extreme weather.

The Council made the statement in its recently published Annual Review 2026 (Transport Chapter). In it, it warned that Ireland’s dependence on fossil fuels in transport is leaving people, businesses, public services and the wider economy exposed to repeated fuel price shocks as geopolitical instability continues to disrupt global energy markets.

The independent advisory body urged the Government to instead reduce this exposure by accelerating investment in public transport, active travel, electric vehicle charging infrastructure and the grid capacity needed to support cleaner transport.