Govt confirms 3c/L reduction to green diesel plus levy cut
The government has confirmed a reduction of 3c/L to the cost of green diesel, as well as a cut to the National Oil Reserves Agency (NORA) levy.
The decision forms part of measures taken by the government to reduce the cost of fuel in light of the conflict in the Middle East and the spiralling cost of fuel as a result.
Green diesel has been particularly impacted.
The government said it is introducing "temporary and targeted measures" to reduce fuel prices for households and businesses, with additional supports for "key sectors" of the economy.
These measures provide for temporary reductions in the rates of Mineral Oil Tax (MOT) - which is a form of excise duty - applying to petrol, autodiesel and marked gas oil, also known as green diesel.
These measures will take effect from midnight tonight (Tuesday, March 24) until May 31.
The rates of MOT will be reduced on a VAT inclusive basis by:
- 15c/L for petrol;
- 20c/L for autodiesel;
- 3c/L for marked gas oil.
The government confirmed it will also reduce the NORA levy by 2c/L to a "nominal amount" for a period of two months.
For hauliers and passenger bus operators, the government will increase the maximum repayment allowable under the Diesel Rebate Scheme, from 7.5c/L up to 12c/L of diesel.
This will apply to diesel purchased from January 1, 2026 until June 30, 2026.
For households, the fuel allowance season will be extended by an additional four weeks.
This means that the roughly 470,000 households in receipt of the fuel allowance will receive additional financial support of €38 per week, totalling €152 per week.
The government said that all these measures will be in place for "a defined period of time", and that it reserves the option "to adjust its approach".
Commenting on these measures, Taoiseach Micheál Martin said: "As a government, we are very mindful of the challenges being faced by increasing fuel costs and remain fully committed to supporting those most at risk.
"Today's measures will help shield households and businesses from the recent unprecedented hikes in fuel prices," he added.
"We are making interventions to reduce the price at the pump for all, to protect our most vulnerable, and to support our haulage industry, as a critical enabler of our economy.
"More broadly, we are making crucial investments in renewable energy, in our electricity grid and, importantly, in energy efficiency," the Taoiseach added.
"Moving away from fossil fuels is key to reducing the impact of the current crisis and future crises.
"We are continuing to monitor the situation and will respond accordingly as the need arises," he said.
