IRELAND ANNOUNCES MEASURES TO REDUCE ENERGY COSTS

March 26, 2026

Having significant milestones in its journey towards becoming a global leader in offshore renewable energy, Ireland has introduced temporary and targeted measures to reduce fuel prices.

According to estimates, the global wave energy resource is far more substantial than that of tidal. Offshore wind, wave, and tidal are the three (03) key categories of marine renewable energy. With a designated sea area seven times the size of its land area the enormous potential for Ireland to exploit marine renewable energy is clear.

Temporary and targeted measures:

• Until 31 May 2026, Mineral Oil Tax rate reduced on a VAT inclusive basis:
• Petrol: 15 cent per litre
• Diesel: 20 cent per litre
• Marked Gas Oil: 3 cent per litre
• Haulage and bus passenger operators: increase the max repayment allowable under the Diesel Rebate Scheme
• Reduced the NORA levy
• Household fuel allowance season has been extended

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Press release

Government Announces Measures to Reduce Energy Costs

From: Department of the Taoiseach

Published on: 24 March 2026

The Government is conscious of the increased financial pressure on households and businesses arising from the ongoing conflict in the Middle East.

In response, the Government will introduce temporary and targeted measures to 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 two 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.

• Government Announces Measures to Reduce Energy Costs

 

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