Fuel Prices
Dail Éireann — 2026-04-28
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Alan Dillon (FG), Mayo

I propose to take Questions Nos 130 and 134 together.
As the Deputy said, the Government is under no illusion about the seriousness of the fuel price shock facing small- and medium-sized enterprises. We recognise that for many businesses fuel and energy are not optional costs. They are a core input that determine whether a business survives or fails. The Department has carried out a detailed sector-by-sector assessment and the evidence is clear that the impact is uneven but acute in particular sectors. In transport and haulage fuel is a direct and immediate cost and price spikes feed straight into cashflow threatening viability, particularly for small operators with limited margins. The agriculture and agrifood sector faces double exposure, with fuel and fertiliser costs along with transport and processing pressures. These costs hit hardest during peak seasonal activities. In construction fuel and energy costs are embedded in materials, logistics and machinery use. The impact here is real and can be built up over time.
Beyond that, retail and hospitality SMEs are also facing sharp increases in energy bills that cannot simply be passed on without rising costs on competitiveness. This assessment has shaped a targeted Government response. Over March and April, we have introduced a substantial package of fuel supports, including VAT-inclusive reductions of 32 cent on the price of a litre of diesel, 27 cent on the price of petrol and 7.4 cent on a litre of green diesel. This is alongside a reduction on the NORA levy. Crucially, we have also deferred the planned carbon tax increase, providing immediate breathing space at a time of exceptional volatility.
We recognise that some sectors also need more than just price relief. For this reason, we have introduced and increased the diesel rebate scheme to 12 cent per litre. We have also established a new road transporter's support scheme, with direct payments for haulage and coach operators, which will cost up to €40 million per month over the next three months. We have also introduced a €100 million fuel subsidy support scheme to assist farmers, contractors and fishers during peak fuel-use months.
At the same time, the Government is looking at the structural costs to reduce further exposure altogether. This is being done through SEAI supports for businesses, which are being helped to cut energy demand permanently through audits, upgrades, renewable heat and microgeneration. Access to finance is also critical. It has been a barrier for many businesses to obtain the right finance to make these upgrades. The growth and sustainability loan scheme provides long-term, low-cost lending of up to €3 million, giving SMEs the capacity to manage shocks and invest through them.
These immediate supports are also being reinforced through structural reform. I outlined earlier that the cost of doing business advisory forum is now finalising its report, which has been brought by SMEs, regulators and Departments through a policy process identifying real cost drivers and also outlining practical solutions and recommendations.
While introducing immediate relief, we continue to monitor sharp rises in cost pressures to ensure that SMEs, jobs and our communities are protected in these uncertain times.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-04-28/debate/main
Retrieved: 2026-08-14T04:54:52+00:00
Sitting date: 2026-04-28