Excise rates on fuel will begin to be restored from November 1 on a phased basis, according to proposals being presented to Cabinet today (Thursday, August 27).

Tánaiste and Minister for Finance Simon Harris will seek approval from the Cabinet to extend reductions in excise on petrol and diesel until November.

The Tánaiste believes that maintaining the reductions through September and October will provide greater certainty for households and businesses amid continued volatility in global energy markets.

In June, the government announced an extension of the temporary reductions to fuel excise and the National Oil Reserves Agency Levy (NORA).

Last week, it was confirmed that a plan to begin reintroducing the original rate of excise duty on fuel from September 1 would not proceed.

Had the scheduled restoration of excise and the NORA levy proceeded from September 1, it would have added 10 cent to a litre of diesel and 9 cent to a litre of petrol.

Fuel

In a memo to ministers, Minister Harris states that the current reductions in excise duty on petrol, auto diesel and marked gas oil (green diesel) should remain fully in place until November 1.

Under the proposals, excise rates would begin to be restored from November 1, but on a phased basis rather than through a single increase.

The restoration would take place over four stages and conclude at the end of February 2027.

The Tánaiste is exepected to tell the Cabinet that a gradual approach would support consumers, while also managing the public finances responsibly.

Ministers are to be asked to agree to an extension of the current NORA levy reduction until October 31 2026, under a proposal from Minister for Climate, Environment and Energy, Darragh O’Brien.

Cabinet will also be asked to extend the enhanced Diesel Rebate Scheme until the end of December 2026, which will provide continued support to qualifying road transport operators.