The government has won a Dáil vote to extend temporary excise cuts on fuel until October 31.

The Dáil was today (Friday, August 28) recalled from its summer recess for the vote which saw 104 TDs vote in favour and 49 against.

Opposition parties claimed the move was in response to government concerns about potentional further fuel protests during the Irish EU presidency.

They also said the government was "kicking the can down the road" as the excise cuts are due to be gradually reversed from November.

Dáil

Tánaiste and Minister for Finance Simon Harris told the Dáil that the excise increases due to take effect next week "will now not happen".

"We're also extending the temporary reduction applying to marked gas oil or green diesel," he said.

He said the temporary measures will be restored on a gradual and phased basis from November 1 until the end of February.

The Tánaiste said the "decision taken by government this week provides certainty for September, certainty for October".

He said extending the excise reductions will cost the Exchequer approximately €407 million, which he said is "a significant intervention".

Since March, government has temporarily reduced mineral oil tax on petrol, diesel and green diesel, and has reduced the National Oil Reserves Agency (NORA) levy to a nominal amount.

This has reduced the cost of diesel by 32c/L, petrol by 27c/L and green diesel by 7.4c/L.

Global prices

The Tánaiste said total government supports to assist households and businesses with increased energy costs arising from the conflict in the Middle East comes to €1.3 billion.

"Despite some easing in global prices in recent days, international energy markets remain exceptionally volatile.

"Nobody in this house will know with certainty where the price of oil will be in November. Nobody knows where it will be in January," he said.

The Tánaiste said the government has a "responsibility to respond to the circumstances in front of us".

"That is why we have recalibrated our approach and we will remain nimble to respond into the future.

Harris added: "No government anywhere in the world, can completely insulate their country from a global energy shock.

"No government can indefinitely use the tax system to cancel movements in international commodity markets. To suggest so is dishonest politics," he said.

"Today we have recalled the Dáil for a very specific and immediate purpose. There were increases at the pump due to hit motors next week. We have decided that that should not now happen," Harris added.

Cost of living

However, Sinn Féin leader Mary Lou McDonald said the Dáil had been recalled because the government "got it wrong" and still had not got the message "because your answer is not to hold fuel tax increases but simply to reschedule them".

"While governments cannot control international geopolitical events or oil prices, you can control the taxes you place on petrol and diesel.

"People need to know definitively that while fuel prices soar, government will not pile on further tax increases when people are struggling. Not now, not in November, not at any stage.

"So what you bring today is not a solution. It's kicking the can down the road. It's postponing the pain, not removing it," she said.

Sinn Féin opposed the government motion and brought forward its own proposal which called for no increase in petrol and diesel taxes while fuel prices remain high.

No vision

Social Democrats leader Holly Cairns accused the government of being "permanently stuck in reaction mode".

"This is not a cost of living strategy, it is a desperate approach from a government with no vision and no ambition," she said.

"We could be back here today for longer than 60 minutes, passing a comprehensive package of measures to make life affordable.

"We could introduce a targeted €400 energy credit for low and middle income households who need it the most," she said.

While the party supported the proposal to extend the move to extension the fuel excise cuts, Cairns claimed "this government has no answer for the day after this deferral ends".

Labour Party leader Ivana Bacik the government's decision to delay the restoration of excise cuts was a response to the fear of further protests.

"It was hard to see, indeed, how your government could have allowed the first phase of these cuts to end in the same week that schools return and commuter traffic ramps up," she said.

The party also supported the government measure, but Bacik said "the decision to delay the restoration of the cuts in no way makes up for your government's failure to protect PAYE workers from the cost-of-living crisis".

Protests

People Before Profit-Solidarity TD Paul Murphy claimed that "the government is scared of the people".

"The only reason that we are here today is because the government is scared of widespread protests about the cost of living crisis.

"And so in response, we have a two-month stay of execution for petrol and diesel alone, completely inadequate," he said.

"What people want, what people need, is certainty, is security, is stability," he added.

Murphy warned of significant protests by the Affordable Ireland campaign ahead of the upcoming budget.

Independent Ireland leader Michael Collins told the Dáil that the farming sector is very concerned that the rebate for farmers in the previous reductions would "be kicked away this time".

"As that is going to be kicked away this time, the farmers are going to get an awful kick back on this and are furious.

"They are talking about protesting. I am trying to keep the peace like we tried to before. The government has forgotten the people out there," he said.

Independent TD Michael Healy-Rae said the government needs to examine the taxation of fuel.

"We have to recognise that people are paying too much tax and excise on the fuel that is required and which they need every day," he said.

Opposition TDs slammed the government for only allocating the "bare minimum" of one hour to debate the financial resolution in the Dáil.

The Tánaiste said the upcoming budget will "provide the appropriate opportunity to consider broader questions around affordability, taxation policies, fuel poverty and how we support households in the here and now with the real cost of living pressures that they face".