Dáil Éireann Debate, Thursday - 26 March 2026
215. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance to provide details of any distributional analysis carried out by his Department on the impact of fuel price increases and proposed mitigation measures on different income groups, including middle-income working households not eligible for social welfare supports. [23352/26]
View answerI am acutely aware of the pressures that rising fuel prices place on households. These are particularly felt by those individuals on lower incomes who spend a greater share of their earnings on essential energy needs. Such households are especially vulnerable to price fluctuations, and the Government recognises the real difficulties this can cause.
While no new distributional analysis has been undertaken specifically in relation to the most recent fuel price developments, previous work by my department consistently shows the same results. Increases in energy costs tend to have a disproportionate impact on lower-income groups. For this reason, the Government is introducing a range of supports aimed at cushioning the impact on those most in need. These measures, including targeted energy supports, are designed to provide timely relief to households facing the greatest financial strain.
At the same time, it is recognised that middle-income working households also come under pressure when energy prices rise. This is why the Government has reduced excise duty by 20 cent on diesel and 15 cent on petrol. In addition, the NORA levy will be reduced by 2 cent per litre, which would bring the total effective cut to 22 cent on diesel and 17 cent on petrol. This broader approach ensures that relief is felt across the income distribution, while remaining focused on protecting the most vulnerable.
Crucially, this support is temporary in nature, as the extent and duration of the current conflict remain uncertain. Nonetheless, the Government will continue to monitor developments closely and stands ready to provide further assistance if necessary.
