Statement from Minister O'Brien on today's Measures to Reduce Energy Costs
- Published on: 24 March 2026
- Last updated on: 24 March 2026
"I, and my government colleagues, understand the pressures that households and businesses are under, arising from the ongoing conflict in the Middle East. We have responded today to the areas under the most acute pressure. Today's targeted intervention is time bound, and my department will continue to monitor and review the ever-evolving nature of this situation.
The extension of the Fuel Allowance is also a critical support for households most at risk of energy poverty.
Since the start of the conflict in the Middle East, I have been in ongoing contact with the haulage sector and fully understand the challenges they face. For that reason, I am pleased that the combination of the cut in excise duty, the reduction in the NORA levy and the increase in the maximum repayment allowable under the Diesel Rebate Scheme will help to address those challenges. I recognise the importance of the haulage sector and the challenges that have faced due to the recent increase in fuel costs. This is a critical sector that plays a crucial role in keeping supply chains and the wider economy moving. The package of supports reflects the issues raised by the haulage industry and will have a direct impact on the cost of fuel at the pump. I remain committed to working with the sector and will meet frequently with their representatives as the situation develops.
More broadly, the ongoing conflict in the Middle East underlines – once again – why we must accelerate the deployment of renewables across all sectors, continue to invest in our grid, and continue to invest in retrofitting of homes and businesses across the country. On retrofitting, I secured a record allocation – for fully-funded and granted-assisted retrofits – of €640 million in Budget 2026, allowing us to target 73,000 home energy upgrades this year. On the deployment of renewables, we recently passed a major milestone in our clean energy transition – achieving 8GW of installed renewable electricity capacity, marking a significant step forward in the transition to securing our future with homegrown renewable electricity.
We will not insulate ourselves from future price shocks unless we reduce our dependence on imported fossil fuels. I, and my government colleagues, am committed to doing that – in a way that protects households, businesses and the economy."
ENDS
Notes to the Editor
Temporary and targeted government measures will reduce fuel prices for households and businesses, with additional supports for key sectors of the Irish economy.
These measures provide for temporary reductions in the rates of Mineral Oil Tax (MOT) applying to petrol, auto diesel and Marked Gas Oil (MGO), taking effect from midnight tonight until 31 May 2026.
The rate of MOT will be reduced on a VAT inclusive basis by:
- 15 cent per litre for petrol
- 20 cent per litre for auto diesel and
- 3 cent per litre for MGO
To provide targeted relief to haulage and bus passenger operators, the government will increase the maximum repayment allowable under the Diesel Rebate Scheme, from 7.5 cent up to 12 cent per litre of diesel. This will apply to diesel purchased from 1 January 2026 until 30 June 2026.
To further ease the financial impact of energy price inflation, the government will reduce the NORA levy from 2 cent per litre to a nominal amount for a period of 2 months.
In order to further support households, the fuel allowance season will be extended by an additional four weeks. This means that the 470,000 households in receipt of the fuel allowance will receive additional financial support of €38 per week, totalling €152.
These measures will be in place for a defined period of time and government reserves the option to adjust its approach as circumstances evolve.