Tánaiste and Minister for Finance Simon Harris has said the Government will provide certainty around excise cuts on petrol and diesel for the winter.
The Government is poised to extend the cuts until late February or early March in next month’s Budget.
The reductions, which were first introduced in April, were set to be unwound from the beginning of November.
Speaking in the Dáil during Leaders’ Questions, Mr Harris said: “Certainty for the winter period on excise is something that we can do and something that we will do.”
Mr Harris also pointed towards a potential cut on the carbon tax on home heating oil.
He told the Dáil how he was “looking at the issue of carbon taxation in terms of how it applies to certain products” and that he was “particularly concerned around the home heating situation and the gas situation”.
The Tánaiste also hinted towards an increase in the fuel allowance, stating how the Government would make decisions in terms of “sectors within our economy that are most at risk of fuel poverty or most dependent on fuel”.
However, Mr Harris stopped short of committing to an energy credit of €400 under questioning from Sinn Féin finance spokesperson Pearse Doherty.
“A million households out re there going to see nearly a double-digit increase [in their electricity bills],” Mr Doherty said.
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He added: “What certainty will you give them? Can you tell them that your decision to withdraw the energy credits has resulted?
“Will you commit to them to introduce a €400 energy credit to help them pay these bills, and also to stop taking the hands-off approach while these big companies are ripping off their customers?”
The pair clashed as Mr Doherty insisted that when the Government “decided to end energy credits, more families fell into arrears”, while Mr Harris maintained the global geopolitical situation was behind “the greatest energy shock in the history of the globe”.
“I know you like to blame me for everything, but the closure of the Strait of Hormuz is a stretch,” Mr Harris said.
Bilateral talks between Cabinet Ministers are continuing at Government Buildings this afternoon as the Coalition tries to finalise next month’s Budget.
The Minister for Public Expenditure Jack Chambers had asked Departments to limit spending growth to 6% or lower in 2027 and for ministers to “prioritise and make choices and trade-offs”.
However, some Departments have sought budgetary increases beyond Mr Chambers’ 6% cap.
Government to extend the fuel support scheme for farmers
A spokesperson for Mr Chambers said that with “budget bilateral continuing, the gaps between Departments’ asks and what can be achieved are being closed. Engagement between officials is continuing also and progress is being made”.
A further Social Protection bilateral is likely next week as the Coalition irons out the intricacies of introducing a cost of disability payment. The payment is set to be included in next month’s Budget announcement but Government sources say its value and eligibility criteria still needs to be determined.
Meanwhile Mr Harris has confirmed the Government is to extend the fuel support scheme for farmers which was announced in the wake of April’s fuel protests.
He said the details of the extension will be finalised in the coming days with Minister for Agriculture Martin Heydon and Mr Chambers holding bilateral budget discussions today.
He was speaking in the Dáil in response to a question from Fianna Fáil Louth TD Erin McGreehan, who claimed rural communities, farmers and fishers were under pressure due to the ongoing fuel crisis.
Total payments under the scheme which had a budget of €85 million, have totalled around €27 million to date
Soc Dems and Labour urge energy supports ahead of Budget
The Social Democrats and Labour have called on the Government to introduce a windfall tax on energy companies and provide additional supports for households struggling with rising energy costs.
During Leaders’ Questions, Social Democrats TD Jennifer Whitmore said many families were facing a “cold and bleak winter” as energy bills continued to rise.
She argued that while more households were falling into arrears, energy companies were reporting strong profits and called for a windfall tax on what she described as “super profits”.
Ms Whitmore said the proceeds should fund a targeted €400 energy credit for low and middle-income households and urged the Government to expand supports for solar panels and battery storage to reduce long-term energy costs.
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Labour’s Ged Nash also pressed the Government on energy costs, saying they were the top concern for many households ahead of Budget 2027.
He accused the Government of failing to provide targeted supports for families hardest hit by rising prices and called for ring-fenced funding to help those facing higher energy, food and construction costs.
Mr Nash also backed calls for a windfall tax on energy companies and a €400 targeted energy credit, arguing that PAYE workers had been overlooked in previous budgets.
Responding, Mr Harris said there was “significant merit” in examining a windfall tax on energy companies and confirmed discussions were taking place at EU level, with further work due to be considered by European finance ministers during budget week.
He said there was a compelling case for examining profits generated by market conditions rather than business performance, but stressed that a coordinated European approach was preferable.
The Tánaiste also confirmed that Budget 2027 would contain an energy package, including measures to help households through the coming winter as well as longer-term initiatives aimed at reducing energy bills.
Mr Harris said the Government would consider “constructive ideas” put forward by opposition parties and insisted there would be a number of measures to assist households with energy costs.
He also defended the Government’s wider cost-of-living response, saying fuel support measures had helped keep inflation lower than it otherwise would have been.
