Tánaiste and Minister for Finance Simon Harris has raised hopes that the planned restoration of fuel excise duty could be postponed if petrol and diesel prices remain at elevated levels.

The Government is currently scheduled to begin unwinding the temporary excise reductions from November, with the relief due to be withdrawn in stages over the following months.

However, Mr Harris has now suggested that pressing ahead with the first increase may no longer be appropriate in the current energy market.

Speaking ahead of the final negotiations on Budget 2027, the Tánaiste said the Government still had several major decisions to make, including the timetable for restoring excise duty on petrol and diesel.

“That may not be the prudent thing to do now if the current elevated prices continue. So we need to look at that,” he said.

The comments represent the clearest indication yet that the Government could delay, reduce or reschedule the proposed fuel-duty increases.

Relief for hauliers?

Any extension would be welcomed by road transport operators, which continue to face exceptionally high diesel bills and uncertainty over future operating costs.

Fuel represents one of the largest expenses for every haulage business. Even a relatively small increase at the pump can add thousands of euro to the annual costs of running a commercial vehicle.

Operators must also price contracts and agree rates several months in advance. The absence of certainty over diesel taxation makes that increasingly difficult, particularly for smaller hauliers working on tight margins.

The existing excise reductions on petrol and diesel were extended until October 31 after the Government acknowledged the continuing pressure from international energy markets. The enhanced Diesel Rebate Scheme for qualifying hauliers and passenger transport operators has also been extended until the end of December.

Unless the timetable is changed again, the phased restoration of fuel excise will begin in November.

Mr Harris’s intervention does not amount to a firm commitment, but it confirms that the planned increases are now under active review as part of the Budget negotiations.

HGVIreland.com campaign

HGVIreland.com has been calling on the Government to halt the proposed fuel-tax increases and provide greater certainty for the Irish road haulage industry.

Restoring excise while diesel prices remain high would increase distribution costs throughout the economy. Those costs would ultimately be reflected in the price of food, construction materials, retail goods and virtually every product transported by road.

Ireland is heavily dependent on road freight, while its island location leaves businesses particularly exposed to fuel-price shocks and increased international transport costs.

Extending the relief would not solve the wider fuel crisis, but it would prevent the Government from making an already difficult situation worse by adding further taxation at the pump.

Decision expected in Budget

Budget 2027 is due to be announced on October 6, leaving the Government with only a short period in which to decide whether the November excise restoration should proceed.

The Tánaiste has stopped short of guaranteeing an extension and made his comments conditional on fuel prices remaining elevated. Nevertheless, the acknowledgement that restoring the duty “may not be prudent” will increase pressure on the Coalition to act.

For hauliers, the message is simple: the Government must not wait until the last minute to provide clarity.

Transport operators need confirmation that the November increase will be halted, that the December increase will not proceed while prices remain high, and that enhanced support through the Diesel Rebate Scheme will continue into 2027.

With diesel prices already placing severe pressure on operating margins, extending the fuel-duty relief is no longer simply a cost-of-living measure. It is essential protection for Ireland’s supply chain and the thousands of businesses that depend on affordable road transport.

Mr Harris has opened the door to an extension. The industry will now expect the Government to follow through in Budget 2027