What the Government is doing

Government has put in place measures on fuel costs and supports for the transport, farming and fisheries sectors. These measures are in addition to the previously allocated €250 million in targeted supports to assist those experiencing real and immediate financial pressure

Government has introduced temporary and targeted measures to reduce fuel prices for households and businesses, with additional supports for key sectors of the Irish economy, including haulage and bus passenger operators.

These measures provide for temporary reductions in the rates of Mineral Oil Tax (MOT) applying to petrol, auto diesel and Marked Gas Oil (MGO).

Mineral Oil Tax (MOT)

The rate of MOT will be reduced on a VAT inclusive basis by:

• 27 cent per litre for petrol,
• 32 cent per litre for auto diesel, and
• 7.4 cent per litre for MGO.

Government has reduced the NORA levy on petroleum products from €0.02 per litre to a nominal level of €0.001 (one tenth of a cent). The reduction is in effect from 1 April to 31 July 2026 and will work in tandem with other measures to reduce the burden on consumers.

Government will defer the planned increase in carbon tax, scheduled for May 1st, until the Budget. This will impact green diesel and non-propellant fuels such as kerosene heating oil, natural gas and solid fuels.

The reductions in the excise on fuel for consumers will take effect from midnight, Tuesday 14th April 2026 and run until 31st July 2026. The already announced NORA levy reduction will also run until 31st July 2026.

Diesel Rebate Scheme

Maximum repayment allowable increased from 7.5 cent up to 12 cent per litre of diesel. To provide targeted relief to haulage and bus passenger operators. This will apply to diesel purchased from 1 January 2026 until 30 June 2026.

To support the haulage and coach sector a new Road Transporters Support Scheme (RTSS) has been established. This is modelled on the Licenced Haulage Support Schemes of 2022 and 2023 deployed to assist the sector with the higher fuel prices following Russia’s invasion of Ukraine.

The scheme will be available to both licensed road haulage operators and the own account sector, in respect of certain heavy goods vehicles (over 3,500kg in laden weight) where the vehicle is used in the haulage business (the carriage of goods by road).

Licensed road passenger operators, subject to certain criteria, may also be eligible for support under the RTSS where they do not receive support under a local link or school transport contract.

The scheme will provide direct payments to haulage and coach operators. Payments will be graduated (see table below), with smaller businesses receiving a proportionately greater level of support.

An initial payment backdated for March 2026 will be made to each qualifying haulage or coach operator.

As well as the above, for coach operators providing local link and school transport services, a separate support measure will be introduced through the contractual arrangements with providers of these services.

The combined cost per month of these supports to the transport sector is estimated at €40 million.

These supports will be in place for three months, and payments will be made for April and May if the national average price of diesel exceeds €1.90 per litre in the month.

Supports to help those most affected by rising fuel costs in the transport sector are as follows:

• 20% reduction on all PSO public transport fares as well as a 50% reduction in public transport fares for 19 to 25 year olds with the Young Adult Travel Card remains in place
• Targeted fares - including initiatives such as the recently introduced free travel for all children up to the age of 9 TFI Child 5 to 8-Leap Card

On top of the direct cost saving supports outlined above, in line with the Department of Transport’s National Sustainable Mobility Policy, Government is making it easier for people to choose sustainable transport options – walking, cycling, public and shared transport – through a number of initiatives including:

• €360 million for Active Travel walking and cycling infrastructure projects across all local authorities, including Greenway sections and Safe Routes to School projects. This investment is dedicated to the development of walking and cycling projects that offer safe, sustainable and healthy transport options to communities around the country. and healthy transport options to communities around the country.
• Shared micromobility schemes, and the roll-out of mobility hubs in line with the Policy Statement on Shared Mobility
• Delivery of the BusConnects programmes in our five cities
• Expanded public transport services, including in regional and rural areas, under the Connecting Ireland programme
• Expanded Park and Ride as well as Park and Share Facilities
• Bike to Work scheme

Under this scheme employers can buy a bicycle and safety equipment for employees, up to the following limits, depending on the type of bicycle purchased.

• €3,000 on cargo and ecargo bikes.
• €1,500 on pedelecs and ebikes.
• €1,250 for other bikes.

This benefit will not be taxable.

• Smarter Travel Programme

• €3,500 grant available for battery electric vehicles (BEVs) when purchased privately, along with benefits of lower motor tax rates and reduced fuel costs. EVs are up to 70% cheaper to run than diesel or petrol cars when you can charge from home
• Up to €5k VRT relief for BEVs
• Preferential BIK category for BEVs
• €45m investment this year towards public charging infrastructure across our motorway, national and local roads network this year which will deliver a 30% increase in overall public charging capacity for EVs. This will ensure that EV drivers are never more than 30km from a high-powered charging point.
• Grants of up to €500,000 per year now available through to the Zero Emission Heavy Duty Vehicle (ZEHDV) grant scheme making it easier and more flexible for companies to invest in electric trucks and buses.
• €7 million allocated under the 2026 Electric Small Public Sector Vehicles (eSPSV) Grant Scheme supporting SPSV operators to transition to electric vehicles

Find out more here about Zero Emissions Vehicle Supports