Government leaders are considering whether to recall the Dáil ahead of schedule as renewed instability in the Middle East raises concerns about fuel prices.
Temporary excise reductions introduced in April are due to be withdrawn gradually from September. The relief amounts to 32 cent per litre of diesel and 27 cent per litre of petrol and formed part of a €750 million package of business supports and cost-of-living measures.
Enterprise Minister Mr Peter Burke indicated that the timetable is being actively reassessed. The international outlook has worsened since the withdrawal schedule was agreed, with developments around the Strait of Hormuz contributing to uncertainty in global energy markets.
The Dáil is currently scheduled to return on September 16th next,. however, an earlier sitting may be required if the Government decides that legislation is needed to postpone the planned excise increases.
Rising costs are already placing additional pressure on agriculture and the wider economy. The net price of marked gas oil, commonly known as green diesel, has increased from about 94 cent to €1.24 per litre, a rise of approximately 30%.
Any extension of the fuel-tax relief would also have budgetary implications. The Government is preparing an overall Budget 2027 package worth more than €8 billion, including €1.5 billion for income-tax measures and an anticipated spending increase of around 6%.
Ministers are also examining ways to lower grocery prices by reducing transport, production and distribution costs. Because fuel expenses affect farming, manufacturing and the movement of goods, further increases could feed through to prices paid by consumers.
No final decision has been made on either the excise timetable or an early Dáil recall. Both options remain under consideration as the Government monitors international developments and prices at Irish fuel pumps.
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