THE GOVERNMENT WILL consider whether to extend the fuel excise cuts on petrol and diesel in the next two weeks, according to Tánaiste Simon Harris.

The emergency measures, introduced in March at the outset of the conflict in the Middle East, are due to expire at the end of July.

Excise on petrol was reduced by 10 cent, bringing the total reduction on petrol to 27 cent (VAT inclusive), while excise on diesel was also reduced by 10 cent bringing the total reduction on diesel to 32 cent.

Marked gas oil (green diesel) was cut by 2.4 cent, bringing the total reduction on green diesel to 7.4 cent. 

Speaking to reporters on his way into the National Economic Forum in Dublin Castle, the Tánaiste said today that a peace agreement between the US and Iran is a “positive economic development”.

Asked whether the agreement would change the approach the government takes with excise tax cuts, Harris said the deal would provide “a positive economic boost”, but warned that it might not have an impact on energy costs in the short-term, given the significant damage to energy infrastructure during the war. 

He was then asked if the government would therefore extend excise cuts on fuel, and said the situation remains fluid.

‘Things go back up’

“We’ve seen time and time again how volatile the oil markets can be when an announcement is made, it comes to pass, prices go down, and announcements are made, and it doesn’t come to pass, and things go back up. So, government is keeping a very close eye on all of this,” he added.

Harris said the issue will be considered in a “couple of weeks’ time” because there is still ample time to consider what the most appropriate thing to do is.

Taoiseach Micheál Martin also welcomed the announcement of an agreement between Iran and United States in respect to the Middle East, telling the media it is an opportunity the world needs to grasp to move into a new era.

“There simply has been too much war and conflict in the world over the last decade that has had a very negative impact on people’s lives,” he said.

Separately, Public Expenditure Minister Jack Chambers was asked about the upcoming budget in October, and said that a tax package will be a “really important priority”.

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He indicated that childcare will be a key pillar in the budget this year.

Harris, who is minister for finance, told the conference that successive budgets have increased the point at which workers enter the higher rate of income tax, helping people keep more of what they earn.

“As we prepare Budget 2027, we will consider further increases in that threshold as a practical way of ensuring wage growth translates into higher take-home pay,” he said. 

The Taoiseach said the government will take actions to reduce costs for families, something Harris confirmed to The Journal last week when speaking on The Candidate podcast.

He added that there is also a need reduce fees and increase places.