The temporary reductions to fuel excise, which were due to expire on 31 July, were extended in full until 31 August with a phased restoration of Mineral Oil Tax rates to pre-reduction levels taking place between September and December 2026 in four stages. Government also extended the NORA Levy reduction until 31 August. The following excise restorations are on a VAT inclusive basis:
• On 1 September, a restoration of 7 cents per litre for petrol and 8 cents per litre for auto diesel, the NORA Levy of c. 2 cent per litre of petroleum product is also scheduled to be reinstated on this date;
• On 1 October, a restoration of 8 cents per litre for petrol and auto diesel;
• On 1 November, a restoration of 5 cents per litre for petrol and 7 cents for auto diesel and 2.7 cents for MGO – and
• On 1 December, a final restoration of 5 cents for petrol, 7 cents for auto diesel and 2.7 cents for MGO.
These measures have helped and will continue to help alleviate some of the pressures being felt by households and businesses affected by fuel price increases as a result of the conflict in the Middle East.
I am advised by Revenue that the cost to the Exchequer of the measures introduced in March and April 2026, comprising reductions in mineral oil tax, carbon tax deferrals, and the diesel rebate scheme is estimated at €311 million to the end of June 2026, inclusive of the impact of these reductions on VAT receipts.
As regards Carbon Tax, legislation was introduced in Finance Act 2020 to provide for annual increases in carbon tax rates up to May 2030. Carbon tax rates on petrol and auto-diesel are legislated to increase around Budget time each year up to 2029 with the increase delayed until 1 May for all other fuels up to 2030. In April, Government deferred the 1 May 2026 increases until October 14 this year.
