A_Smoke and mirrors
Home / Vehicle Fuel / €505m Fuel Relief Announced – Drivers Still Pay 48–57% Tax: Was This Just Smoke and Mirrors Ahead of Ireland’s EU Presidency?

€505m Fuel Relief Announced – Drivers Still Pay 48–57% Tax: Was This Just Smoke and Mirrors Ahead of Ireland’s EU Presidency?

Please do you own research on these figures there may be deviations since publication.

The government’s €505 million fuel relief package, announced on 12 April, includes a further 10 cent per litre reduction in excise duty on petrol and diesel (VAT inclusive), bringing the cumulative cuts to approximately 27c on petrol and 32c on diesel including VAT.

It also provides targeted grants and supports for hauliers, farmers, fisheries, and bus operators. However, for ordinary motorists, the main relief is this temporary excise reduction, which is scheduled to expire on 31 July 2026.

Update: (48–57%) are correct now, these are post-reduction figures.

Official AA Ireland Breakdown (April 2026)Here’s the exact latest data from AA Ireland for the average pump prices:Diesel (€2.14 per litre):

  • Price before any taxes/levies/charges: €1.1059
  • Total taxes, levies & charges: €1.0341 → 48% of the pump price

Breakdown of the taxes:

  • Excise duty: 42.57c
  • NORA levy: 2.00c
  • Carbon tax: 18.74c
  • Better Energy levy: 0.08c
  • VAT (23%): 40.02c

Petrol (€1.91 per litre):

  • Total taxes, levies & charges: €1.0833 → 57% of the pump price
  • Of which VAT alone is 35.72c

    ________________________________________

Cumulative Excise Reductions (VAT-Inclusive)

Fuel TypeTotal Reduction at the Pump (VAT-Inclusive)Approximate Excise Cut (ex-VAT)
Petrol27 cent per litre= 21.95 cent
Diesel (Auto Diesel)32 cent per litre= 26.02 cent
Green Diesel (Marked Gas Oil)7.4 cent per litre= 6.02 cent

Quick Explanation

  • The figures above are the total cumulative cuts since the first package in late March 2026 (initial 15c/20c + additional 10c/10c + minor NORA levy adjustments).
  • The headline numbers (27c and 32c) are VAT-inclusive — this is the actual saving you should eventually see at the pumps.
  • To calculate the ex-VAT portion: Divide by 1.23 (because VAT is 23%).

These temporary reductions took effect from midnight 14/15 April 2026 and are scheduled to run until 31 July 2026 (unless extended by the government).

While the package also provides targeted grants to hauliers, farmers, fisheries and bus operators, ordinary drivers receive only the temporary excise cut on petrol and diesel due to end on 31 July 2026.”


_________________________________