The Irish Road Haulage Association (IRHA) has warned that fuel prices are unlikely to fall before the Government begins unwinding its fuel-support measures on November 1.
The association has called for radical and decisive action on fuel policy, arguing that Ireland must reduce its dependence on fossil fuels imported from the Middle East and accelerate the transition towards sustainable biofuels produced within the European Union.
IRHA president Ger Hyland said the Government should introduce subsidies to make biofuels commercially viable for road transport operators.
Such a move, he argued, would reduce Ireland’s exposure to volatile international fuel markets while delivering lower carbon emissions, strengthening energy security and providing an additional source of income for European farmers producing crops for biofuel production.
According to Hyland, subsidising biofuels could prove cost-neutral for the Government over the longer term. He said the resulting reduction in transport emissions could help Ireland lower its exposure to potential EU climate penalties.
His comments come as diesel prices have climbed to as much as €2.10 per litre in some parts of Ireland, with little indication that fuel costs will ease significantly in the short term.
Hyland said: “The view of the IRHA is that fuel prices will get worse before they get better. Government are in a difficult place. Fuel prices are not coming down in the short to medium term. The only real solution is a move away from fuels imported from volatile parts of the world and a switch to biofuels which are produced right here in the EU”
IRHA proposes targeted biofuel supports
In its pre-Budget submission to the Government, the IRHA has proposed two targeted fiscal measures designed to encourage the immediate uptake of sustainable biofuels across Ireland’s heavy goods vehicle fleet.
The association believes hydrotreated vegetable oil (HVO) represents a viable and readily available interim solution for the road haulage industry.
HVO can be used as an alternative to conventional diesel in many existing heavy commercial vehicles, potentially allowing operators to reduce emissions without immediately replacing their fleets.
According to the IRHA, HVO could deliver emissions reductions of up to 83 per cent. That figure was outlined in an independent Indecon report produced for the Department of Transport in 2025.
The association maintains that the principal barrier to wider adoption remains the price difference between HVO and conventional diesel. Targeted Government intervention would be required to make the lower-carbon fuel financially viable for hauliers operating on tight margins.
Transport currently accounts for more than 20 per cent of Ireland’s national greenhouse gas emissions. Hyland acknowledged the scale of the decarbonisation challenge but argued that properly supported biofuels could benefit the Government, the haulage sector and the wider European economy.
He said: “If the government introduces subsidies to make biofuels a financially viable option, our industry can significantly reduce carbon emissions overnight. Government pay less EU climate fines, jobs are protected, competitiveness is maintained, and EU farmers can produce crops for biofuels on the side, creating more EU jobs and industry. It is a win win for all”
The IRHA is now calling on the Government to reconsider the November 1 withdrawal of fuel supports and introduce a long-term policy that protects the competitiveness of Irish hauliers while accelerating the industry’s transition to lower-carbon fuels.
