Mohan Sinha
30 Jun 2026

DUBLIN, Ireland: On June 30, government coalition leaders are meeting to discuss extending some petrol and diesel tax cuts beyond July 31.

No final decision has been made yet, but reports say the cuts, introduced after fuel protests in April, will likely be gradually reduced over the coming months.

Ministers do not want fuel prices to rise suddenly for consumers. However, officials say that since oil prices have recently fallen and fuel prices at pumps have also dropped, the need for these tax cuts is no longer as strong.

Taoiseach Micheál Martin, Tánaiste and Finance Minister Simon Harris, and Minister of State Seán Canney discussed the issue with senior officials on June 29 before they present their plans to the Cabinet on June 30.

Currently, fuel tax cuts of 32 cents per liter on diesel and 27 cents per liter on petrol are set to end in late July. Any extension or change will require new laws to be passed before the summer break, which starts on July 16.

One source said leaders finalized their decision on June 29 and will seek Cabinet approval on June 30, with legislation introduced quickly.

Both Martin and Harris have said they want to avoid a sudden jump in fuel prices when the cuts end, suggesting the changes will be phased out slowly instead.

Officials are also concerned that increasing fuel prices could push up inflation. The Finance Department estimates that the current tax cuts have reduced inflation by about 0.6 percent.

It is expected that the tax cuts will be gradually phased out between August and the end of the year. The process could begin on August 1, though some believe it might start later, possibly September 1.

The Government is also likely to handle the rollback of these tax cuts separately from the national Budget, which is due in early October.