LAST UPDATE | 19 Mar

TRANSPORT MINISTER DARRAGH O’Brien has said a government intervention aimed at reducing fuel prices will be voted on in the Dáil and put in place next week, once it is approved by cabinet next Tuesday. 

O’Brien said today he had been working on the details and that he had consulted with Taoiseach Micheál Martin and Tánaiste Simon Harris. 

He did not go into details, saying the measure still has to be agreed by the leaders of the coalition government.

He said it was his understanding that it would “come forward by way of a financial resolution and I would imagine that it would be voted on in the Dáil and put in place next week”. 

Earlier today, hauliers said they had paused the threat of protest action after being promised “substantial support” from government, following talks with O’Brien.

Representatives from the Irish Road Haulage Association will remain in the department over the coming days, working with officials to finalise the details of a support package aimed at easing the pressure of soaring fuel costs.

The measures, including relief on excise duties on fuel and an enhanced diesel rebate scheme for hauliers, are expected to be announced on Tuesday as part of a wider government response.

These will be reviewed every two weeks for the duration of the crisis in the Middle East.

The breakthrough comes after weeks of mounting pressure from the sector, with hauliers warning they were prepared to take “immediate protest action” if no concrete measures were put in place.

Fuel prices have surged in recent weeks amid global market disruption linked to the conflict in the Middle East, with diesel now surpassing €2 per litre at many forecourts and petrol close behind.

Hauliers had been seeking emergency steps including cuts to excise duty and a temporary suspension of carbon tax, arguing that many operators could not continue to absorb the rising costs.

Following this morning’s meeting, IRHA president Ger Hyland indicated that the tone of engagement with government had shifted, with further discussions now set to take place over the weekend.

“For now, we are happy to suspend any strike action,” Hyland said.

“In our discussions with the Minister, there was a reference made to backdating supports and this will form part of the ongoing negotiations this weekend. All of the other issues that are impacting on our industry will form part of these negotiations.”

Any protest action is now effectively on hold while those talks continue and ahead of Tuesday’s Cabinet decision.

The government has already signalled that any intervention is likely to be targeted and time-limited, with Tánaiste Simon Harris confirming that an “appropriate intervention” is being finalised.

Speaking on RTÉ Radio’s News at One earlier today, Minister O’Brien said that the Government is “looking at various options about how we can lessen the impact of the very severe cost increases that we’ve seen since the outbreak of the conflict”.

“This is changing not just on a daily basis, but on an hourly basis. So it is a very volatile situation, that’s why the government has to respond in a targeted, in a nimble and flexible way because we will need that flexibility going forward,” O’Brien said.

The minister added the the government is aiming to “make sure whatever we bring forward is targeted”.

O’Brien was then asked if these measures would include a temporary cut of excise duty on fuel, which would cause prices to drop (excise duty of 54c is charged on every litre of petrol, as well as 42c on every litre of diesel).

Taoiseach Micheál Martin had strongly hinted earlier this week that excise duty could be cut to alleviate fuel costs.

“Obviously in advance of cabinet, like I’ve been discussing this with the Taoiseach and with the Minister for Finance, the Tanaiste as well again this morning, and that it will be on the table, it is one of our considerations,” O’Brien said.

The road haulage sector has warned that continued increases in fuel costs could have knock-on effects across the wider economy, including higher prices for goods and potential disruption to supply chains.

“When transport costs go up, groceries, clothes, building materials and everything in between goes up in price,” Hyland said.