Irish hauliers have received a welcome boost with confirmation that the Diesel Rebate Scheme (DRS) will remain in place until the end of 2026, providing continued support to transport operators facing high fuel and operating costs.
The scheme allows qualifying road haulage and passenger transport operators to reclaim a portion of the Mineral Oil Tax paid on diesel purchased in Ireland and used in qualifying vehicles.
Earlier this year, the Government increased the maximum rebate available under the scheme from 7.5 cent to 12 cent per litre, providing additional assistance as diesel prices came under renewed pressure.
However, the enhanced 12 cent rate is currently scheduled to apply only until 30 September 2026, with the published rate reverting to a maximum of 7.5 cent per litre from 1 October. The haulage industry will therefore be watching closely for confirmation on whether the enhanced rebate will also be extended until year-end.
The continuation of the DRS comes as the Government moves to ease the impact of fuel costs more widely, including postponing the full restoration of previous reductions in fuel excise.
For road transport operators, where diesel remains one of the largest and most volatile operating expenses, the measures should provide some additional cost certainty heading into the final quarter of the year.
The announcement will nevertheless increase calls from the haulage sector for a longer-term approach to commercial diesel taxation, rather than temporary extensions, as operators continue to contend with rising wages, insurance, vehicle, maintenance and compliance costs.
The DRS announcement comes alongside another significant development for hauliers. The Government is also proposing to postpone the restoration of the temporary excise reductions on petrol and diesel. Instead of sharp increases, excise is expected to be restored in four stages between November 2026 and the end of February 2027.
That’s significant because planned increases would have added approximately 10 cent per litre to diesel, potentially pushing pump prices above €2 per litre.
For a haulage business consuming large volumes of diesel, the combination of the delayed excise increases and continuation of the DRS provides some welcome cost certainty heading into the final months of the year.
