The European Commission has formally approved the government's €85 million Fuel Income Support Scheme.

The State aid scheme aims to support farmers and agricultural and forestry contractors who were faced with increased fuel prices due to the war in the Middle East.

In a statement issued today (Wednesday, June 17), the commission said that the scheme was approved under the Middle East Crisis Temporary State Aid Framework (METSAF).

The framework was adopted by the commission on April 29, 2026 to support the EU economy from the impacts of the US-Iran war.

It allows member states to "act immediately to make sure that the growth of the most exposed companies is not irreparably hampered by the current crisis".

Support can take various forms for companies active in the agriculture, fishery and transport sectors.

This includes aid based on actual consumption to cover part of the price increases for fuel or fertilisers, and a simplified approach for small amounts of aid.

Fuel support scheme

Ireland notified to the commission of the fuel scheme to support companies active in the primary production of agricultural products.

Prices for marked gas oil, known as green diesel, rose from €0.97 per litre in late February to €1.80 per litre by mid-April.

The commission noted that the scheme "aims to mitigate the impact of the increase in fuel prices for the peak fuel usage months for the farming sector of March to July 2026".

"The aid will take the form of direct grants based on the volume of fuel usage in 2025. Companies can receive up to €0.20 per litre of fuel purchased during the eligible 5-month period," the commission added.

Following its assessment, the commission found that the scheme is in line with the conditions set out in the METSAF.

"In particular, aid will be granted based on a scheme with a clear estimated budget, and aid will be provided to temporarily support the development of companies active in primary production of agricultural products.

"The commission concluded that the scheme is necessary, appropriate and proportionate to facilitate the development of an economic activity and does not adversely affect trading conditions to an extent contrary to the common interest," the statement added.

Applications

The Department of Agriculture, Food and the Marine (DAFM) has confirmed to Agriland that 32,417 farmers applied for the Fuel Income Support Scheme.

The department said that "in excess of 2,000 paper applications, the majority of which are from agricultural/forestry contractors have been received".

However, DAFM noted this figure may change as "analysis of the correspondence received is still ongoing".

Minister for Agriculture, Food and the Marine Martin Heydon recently indicated that the final payments under the scheme could be more than 20c/L.

He said the total payment to be made to each applicant will be calculated once all claims have been checked and verified.

The minister said that payments are expected to issue in the coming weeks, before the end of July.