The Fuel Income Support Scheme will be extended to cover a further five month period in 2026.

This was confirmed by Minister for Public Expenditure Jack Chambers as part of Budget 2027 today (Tuesday, October 6).

The scheme originally opened this year with a budget of €80 million to provide support to farmers and contractors dealing with large increases in green diesel costs.

The amount of money available to each beneficiary for fuel usge in in 2026 was tied to their 'normal' fuel usage in the five month period of March to July, inclusive, the previous year.

However, under €30 million of the allocation is expected to be used for the scheme's initial run.

This led to calls for the scheme to be extended so that more of the allocation could be used.

Minister Chambers announced that €31.2 million will now be made available to cover the costs of an additional five month window this year.

Minister Chambers told the Dáil today: "I am conscious of the pressures that farmers are facing when it comes to fuel costs.

"Therefore, the Fuel Income Support Scheme for farmers and agricultural contractors, and related horticulture and fisheries schemes, are being extended to cover a further five-month period this year at a cost of [€31.2 million]," Minister Chambers added.

He also told that Dáil: "For decades now, our agriculture sector has been delivering for Ireland. A key component of our modern economy, it is the heartbeat of every corner of Ireland, supporting almost €160,000 jobs."

Budget 2027

On other fuel related measures announced in Budget 2027, excise duty cuts on fuel are set to continue over the winter and remain in place until the end of next February.

The temporary reduced fuel excise rates, put in place in response to the impact of the conflict in the Middle East on fuel costs, had due to be in place until November.

However, Tánaiste and Minister for Finance Simon Harris said these reductions will now remain fully in place until February 28, 2027.

The reduced National Oil Reserves Agency (NORA) levy will also be extended until December 31.

The Tánaiste also confirmed that carbon tax on home heating oil (kerosene) and gas is being reduced and "will not increase again in the lifetime of this government".

Rates on these products were scheduled to increase twice between now and May 2027, from €63.50 per tonne of carbon dioxide (CO2) today to €78.50 by May 1 next year.

Instead, the rates will both be reduced back to where they were in 2023 to €48 and €50 per tonne respectively.