The government has this afternoon (Friday August 21) decided not to reintroduce its original rate of excise duty on fuel from September 1.

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

The measures resulted in an excise duty cut of 27c/L on petrol and 32c/L on diesel.

To avoid what it described as "any cliff edge removal of supports", it set out to gradually restore rates to pre-reduction levels, starting from September 1. 

However in recent weeks, momentum has been growing again in opposition to the return of fuel prices to the pre-conflict levels.

Farmers and contractors in particular, as well as road hauliers have said that any increase in excise at this point could render their enterprises unviable.

In a statement today, a spokesperson for the government said: "As a government, we have said since the conflict in the Middle East began that we would monitor the situation closely and reserve the right to adjust our response as required with nothing ruled out. 

"This step-by-step, phase-by-phase approach has ensured that we have made one of the largest fiscal interventions of any EU member state this year when it comes to responding to the impacts of the crisis helping to reduce the cost burden at the petrol pump, support those most at risk of energy poverty, and assisted key sectors that are critical to keeping our economy moving."

The government has outlined that these interventions have kept inflation under control and "provided relief" at the pumps. 

"However, it is clear that in the intervening period there has been a change in the global situation and as a consequence the cost of petrol and diesel for consumers," the government stated.

"The Taoiseach, Tánaiste and Minister of State Seán Canney have kept in close contact in recent days and weeks and this morning agreed that the planned increases on September 1 and October 1 will not now go ahead."

The government is expected to agree the next steps next week.

"Ultimately the greatest economic intervention we can see is de-escalation in the Middle East - and that is still the case," the government statement added.

"The government has been clear there will be decisive interventions in the Budget that will be framed around assisting people with the cost of living including to reward work, reduce costs, and protect the economy."

It's understood that groups had already been mobilising with a view to national protest on August 31 if the government was not for turning on the fuel excise decision.