Dáil Éireann Debate, Tuesday - 26 May 2026
467. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance the extent to which geopolitical instability is contributing to increased import costs for energy, food, and key goods in Ireland; the estimated impact on the cost of living for households; and the measures being taken at EU and national level to mitigate these pressures; and if he will make a statement on the matter. [38394/26]
View answerGeopolitical instability, most notably the conflict in the Middle East and the associated disruption to commodity flows, has contributed to higher prices for a range of goods, in particular petroleum fuels. These fuels are either imported or rely on imported crude oil.
According to the latest available data from the CSO, annual inflation for fuels stood at 29 per cent in April and contributed around 1¼ percentage points to headline inflation. Annual inflation in Ireland, measured on a harmonised basis stood at 3.6 per cent in April.
Higher prices for energy and other commodities, as well disruption to supply chains triggered by the conflict in the Middle East are expected to feed into higher import costs for other key goods, such as food albeit with a lag.
Government is very aware of the real pressure that these price increases have placed on households and businesses. That is why at a national level, over the last number of weeks Government has intervened to help ease some of the burden of rising energy prices, with two packages of measures worth over €750 million.
The first package of measures, introduced at the end of March, reduced excise on fuel, cut the NORA levy and enhanced the diesel rebate scheme. To further support households, Government extended the fuel allowance season by an additional four weeks. This means that 470,000 households received additional financial support of €38 per week, totalling €152.
The second package of measures, introduced in April, included a further cut in the excise duty on fuel, which brings the total reduction, inclusive of the cut to the NORA levy, to 32 cent per litre for diesel and 27 cent per litre for petrol. Government is further reducing excise on green diesel, bringing the total reduction to 7.4 cent. Government is also delaying the carbon tax increase scheduled for May and has introduced support schemes targeted at the agricultural and transport sectors.
At an EU level, a number of actions have been taken to respond to the current energy price pressures.
The AccelerateEU package, published by the European Commission, is a short-term crisis response triggered by the recent rise in energy prices. This package provides a coordinated toolbox of temporary measures, including targeted consumer and industry supports supported by relaxed state aid rules, alongside enhanced market coordination. It also reinforces structural reforms such as electrification, renewable deployment, grid investment and energy tax reform, reflecting a dual objective of managing current shocks while reducing future exposure to fossil fuel price volatility.
