Fuel excise cuts extended to the end of February, and carbon tax on heating cut
Harris said the temporary cuts in fuel excise, 27 cent on petrol and 32 cent on diesel, stay fully in place until 28 February 2027 and are then restored in four phases, with full restoration on 30 June 2027 (RTÉ, Irish Times, Agriland, Connacht Tribune). The reduced NORA levy is extended to 31 December, as is the enhanced diesel rebate scheme. Carbon tax rates on home heating oil and gas are cut back to 2023 levels and will not increase in this Government's lifetime. The fuel allowance rises by €5 to €43. One-off energy credits were not reintroduced. Fuel protest leaders told the Irish Examiner action would go ahead.
Fuel and heating costs run through the price of food, transport and delivery. The extension avoids a jump in pump prices this winter, but it only postpones the cost of restoring the tax.
Petrol and diesel keep their tax cut until the end of February. Heating oil users benefit from the carbon tax reduction. Expect restoration of the excise cuts to start in March.
The Government says a phased path protects households while oil stays dear.
Protest groups say the budget did nothing to lower the actual pump price, and critics say untargeted cuts are costly.
The date to remember is 1 March. If oil is still near US$90 then, the phase-in will be a political test.
DailyDrop Ireland edition No. 3 · Morning · WED., OCT. 7, 2026