The Government is to extend the temporary reduced fuel excise rates until the end of February 2027, and gradually restore them over the following four months.
The cuts, which were first introduced in April, have resulted in a 32c lowering of the price of a litre of diesel while 27c was shaved off the cost per litre of petrol.
They had been due to be restored in November.
In his Budget speech, Minister for Finance Simon Harris said that the Government will begin a “gradual and responsible” restoration of excise in four phases, with a full restoration by the end of June 2027.
Planned Carbon Tax rises for petrol and diesel have been deferred to next year, when there will be two.
The minister also announced the extension of the reduced NORA levy until the end of the year as well as an extension to the enhanced Diesel Rebate Scheme until the end of this year.
The Department of Finance said it is also engaging with the European Commission to establish a more favourable tax treatment for Hydrotreated Vegetable Oil, or HVO, to assist people transitioning to a greener alternative.
The minister said the extension of these measures will continue to lower inflation, reduce the cost of doing business and keep more money in people’s pockets.
Carbon Tax on home heating oil and gas is being reduced and will not increase again in the lifetime of this Government.
Mr Harris also confirmed that the rate of carbon tax on both home heating oil (kerosene) and natural gas will be reduced, rather than increased, as was scheduled.
Rates on these products were scheduled to increase twice between now and May 2027, from €63.50 per tonne of CO2 today to €78.50 per tonne by 1 May 2027.
Instead, they will both be reduced to €48.50 per tonne.
The Irish Road Haulage Association said “time will tell” if supports announced for the industry will go far enough.
IRHA President Ger Hyland said: “We certainly didn’t get everything we were looking for.”
Speaking on RTÉ’s News At One, he said: “We did get help, but is it going to go far enough? Time will tell with the price of fuel today at €2.20 at some of the pumps and we got support but they weren’t what we asked for.
“They will certainly help some of the hauliers but will it be enough to keep everybody on the road? That’s the big question we have to ask ourselves now.”
Mr Hyland said today’s announcements will hopefully be enough to keep protesters “off the streets”.
“While some of our members were on protest last time around, the reason they were on protest was they just couldn’t make ends meet, they couldn’t see a way through this,” he said.
“Hopefully, we’ve got enough here today to keep our members off the streets.”
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