Irish Government expected to agree plan to cut fuel costs

The Cabinet is set to meet on Wednesday morning to discuss and likely sign off on the plan by a reduction in excise duties.

The Irish Government is expected to agree a plan to cut fuel costs by a reduction in excise duties amid spiralling price rises. (Brian Lawless/PA) (PA Wire)

The Irish Government is expected to agree a plan to cut fuel costs by a reduction in excise duties.

The Cabinet is set to meet on Wednesday morning to discuss and likely sign off on the plan, the PA news agency understands.

It comes amid concerns that the escalating cost-of-living in the Republic of Ireland may be worsened by the Russian invasion of Ukraine.

Earlier, the Government was challenged to tackle spiralling price rises.

Sinn Fein leader Mary Lou McDonald said people cannot wait for a financial package from the Government as they are struggling to fill their cars and heat their homes.

In response, Taoiseach Micheal Martin said the Government was actively considering how it can help those struggling with energy costs.

During leaders’ questions in the Dail, Mrs McDonald said: “The price of energy and fuel has soared over the last year and prices have risen even more rapidly following the criminal Russian invasion of Ukraine, which has resulted in an unprecedented interruption in the global energy market.

“The cost of petrol at the pumps has gone up by 70 cents (58p) a litre since January of last year and we are now at a point where many people can no longer afford to put fuel in their car to get to work.

“In that same timescale, the price of home heating oil has doubled and households are now being charged more than 700 euros (£580) for a half-fill of oil.

“Families now struggle to keep their homes warm. I know that many people are layering up with clothes, some are just heating one room or not heating their home at all.

“These fuel cost hikes are not sustainable for any worker or any family or small businesses. People are already hammered by extortionate rents, unaffordable house prices and ever rising costs of insurance and childcare.

“It seems you are not ready to take action this week to reduce the cost of fuel.”