Rising energy prices: Limited measures expected - but Government rules out Russia-Ukraine crisis style support package

"The Irish Independent understands the forthcoming measures are likely to be for a very short period, with intervention on the scale of those put in place after Russia's invasion of Ukraine in 2022 being ruled out. It is understood the Government is anxious to avoid committing to another large‑scale package running into hundreds of millions of euro, with senior figures highlighting the volatility of the current situation and insisting that no firm decisions have yet been taken."

"The view is that any response should be short, targeted and more limited than the extensive cost‑of‑living interventions introduced after Russia's invasion of Ukraine. The Government introduced an emergency excise duty cut of 20c in March 2022 following Russia's invasion of Ukraine. Between February and April that same year, it also rolled out direct household supports, including a €200 electricity credit for every home and two separate lump‑sum Fuel Allowance payments."

"While it is unclear what the exact intervention by the Government will be, the Sunday Independent reported last week that one option available to the Coalition would be to extend the fuel allowance season beyond April because the cost of kerosene remains well above €800 for 500 litres, possibly targeting it at older people, carers and those most at risk of fuel poverty. The other option would be to respond by cutting excise on petrol and diesel, an administratively straightforward move."

The Irish government is considering targeted, short-term interventions to address cost-of-living pressures amid ongoing geopolitical uncertainty. Officials are deliberately avoiding large-scale commitments comparable to the extensive support packages introduced after Russia's 2022 invasion of Ukraine. The Taoiseach has rejected delaying a planned May carbon tax increase. Potential measures include extending the fuel allowance season beyond April to assist vulnerable populations, or reducing excise duties on petrol and diesel. The government emphasizes the volatile situation requires ongoing review rather than firm long-term commitments, with decisions remaining fluid as international developments unfold.

Read at Irish Independent