A "comprehensive" €100 million Fuel Subsidy Support Scheme to assist farmers, agricultural contractors and fishers facing "unprecedented increases" in fuel costs has been announced.

Minister for Agriculture, Food and the Marine, Martin Heydon has confirmed that the payments will cover the months of March up to the end of July which also coincides with peak fuel usage season for field work on farms.

The package comes in response to the sharp rise in the price of marked gas oil, commonly known as green diesel, which has nearly doubled since February due to ongoing geopolitical instability in the Middle East.

Prices have risen from €0.97 per litre in late February to €1.80 per litre in recent weeks, placing severe financial pressure on key sectors of Ireland’s food production economy, the minister said.

Fuel usage

The scheme will provide €20 million per month in supports, with funding directly linked to fuel usage last year to ensure those most impacted by the fuel price increase receive the greatest assistance.

Farmers and agricultural contractors will benefit from a support rate equivalent to approximately 20c/L litre of marked gas oil used based on verified fuel consumption in 2025.

The funding will be distributed proportionally - a point that was "strongly emphasised in ongoing engagements with the representative farm and farm contractor groups", according to the minister.

Eligible farmers

Approximately 120,000 farmers and 1,500 full-time agricultural contractors will be eligible to apply for support.

Payments will be made through a single application process, with funding allocated based on fuel usage last year.

Eligibility will require applicants to demonstrate active farming or contracting status, tax compliance, and verifiable fuel usage.

A system of checks and inspections will be implemented to ensure accountability. EU state aid cover will also be necessary.

Up to €5 million per month will be allocated to support fishers and other sectors effected such as forestry and specialist horticulture.

Fishers are facing acute challenges, exacerbated by very high fuel costs.

A tailored scheme for fishers will be developed, subject to EU state aid requirements.

'Exceptional pressure'

Minister Heydon said the government "recognises the exceptional pressure that rising fuel costs are placing on our farmers, contractors and fishers".

"This targeted and practical support package ensures that those most exposed to these increases will receive meaningful assistance at the most critical time of year," he said.

"We have worked intensively with representative stakeholder groups in recent times, and I believe that this represents a fair and effective scheme based on actual fuel usage, taking account also of the vital work played by farm contractors in our farming systems.

The Department of Agriculture, Food and the Marine has commenced "intensive preparations" to implement the scheme as quickly as possible, it said.

Given the scale and complexity, timelines will be "carefully managed to ensure efficient delivery".

Stakeholders will be kept informed as the scheme is finalised and rolled out, the department said.

Fuel supports

Taoiseach Micheál Martin has confirmed a number of other supports.

Speaking tonight (Sunday, April 12), he announced that the increase to carbon tax due to take effect next month is being postponed until the budget in October.

He also said that the government is now extending temporary measures to reduce excise duty on petrol, diesel and marked gas oil from the end of May to the end of July.

The government intends to introduce a further 10c reduction in excise duty on petrol and on diesel, and a further 2.4c reduction on marked gas oil, effective from midnight on Tuesday, subject to Oireachtas approval.

The overall package announced today amounts to €505 million.